World Bank Revises Growth Outlook for 2026
However, the international financial institution cautioned in its January 2026 Global Economic Prospects report that this figure still represents a deceleration from 2025's 2.7 percent expansion rate, accompanied by a growing divide in prosperity levels across nations.
The 2020s are "on track to be the weakest decade for global growth since the 1960s," the report said.
The World Bank attributed the global economy's unexpected durability to robust U.S. economic performance and artificial intelligence-related capital expenditure. Yet the organization anticipates international trade expansion will slow dramatically amid policy uncertainty in 2026, as inventory accumulation diminishes and tariff policy consequences materialize.
A widening prosperity gap between wealthier and less developed economies represents another significant concern for the World Bank.
The institution urged governments to implement comprehensive policy overhauls, including trade liberalization and investment in technology and education, to foster sustainable growth, while noting downside risks from trade tensions persist.
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