World Bank's Global Economic Projections: Resilience Amid Challenges

The World Bank predicts slightly improved global GDP growth for 2026 compared to previous forecasts, with better-than-expected performance in advanced economies like the U.S. However, global growth remains weak, insufficient to reduce extreme poverty, and challenges persist in emerging markets and developing countries.

The global economy is displaying more resilience than previously anticipated, with 2026 GDP growth projected to surpass earlier estimates slightly, as indicated by the World Bank. Despite this positive revision, the growth remains predominantly concentrated in advanced economies and is deemed insufficient to alleviate extreme poverty across the globe.

The World Bank's revised predictions show an incremental increase of two-tenths of a percentage point in the 2026 GDP forecast, largely driven by unexpected growth in the U.S. amidst ongoing trade disruptions. Notably, U.S. GDP is anticipated to grow by 2.2% in 2026, an improvement over previous projections.

Nevertheless, the prospects for emerging markets and developing countries appear bleak, with growth too weak to prevent stagnation and joblessness. The forecast suggests that the 2020s might be the weakest growth decade since the 1960s, underscoring the pressing need for economic dynamism to bridge the global growth disparity.

(With inputs from agencies.)