The global economy is showing greater resilience than previously expected despite ongoing trade tensions and policy uncertainty, the World Bank has said in its latest Global Economic Prospects report.
Global growth is projected to remain broadly stable over the next two years, easing to 2.6 per cent in 2026 before inching up to 2.7 per cent in 2027. Both figures represent an upward revision from the Bank’s June forecast.
The improved outlook is driven largely by stronger-than-expected performance in major economies, particularly the United States, which accounts for nearly two-thirds of the upward revision to the 2026 growth forecast.
Even so, the report warns that if current projections hold, the 2020s will be the weakest decade for global growth since the 1960s.
Slow growth is also deepening global inequality. By the end of 2025, almost all advanced economies had restored per-capita incomes above pre-pandemic levels. In contrast, about one-quarter of developing economies remained poorer than they were in 2019.
Growth in 2025 was buoyed by a surge in trade ahead of anticipated policy changes and rapid adjustments in global supply chains.
These temporary supports are expected to fade in 2026 as trade activity and domestic demand weaken. However, easing global financial conditions and fiscal expansion in several large economies should help soften the slowdown.
Global inflation is forecast to decline to 2.6 per cent in 2026, reflecting softer labour markets and lower energy prices. Growth is expected to pick up again in 2027 as trade patterns adjust and policy uncertainty eases.
Source:Mybrytfmonline.com
