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World Bank Lifts 2026 Outlook on U.S. Strength, Warns This Decade Risks Weakest Growth Since the 1960s

The upgrade reflects limited tariff pass-through alongside an AI-driven investment surge.

Overview

  • Global growth is now projected at 2.6% in 2026 after 2.7% in 2025, representing a 0.2 percentage point upgrade from June.
  • U.S. GDP is forecast to grow 2.2% in 2026 after 2.1% in 2025, supported by robust AI-related investment and muted tariff pass-through.
  • India’s forecast rises to 7.2% for FY26 with FY27 kept at 6.5%, slightly below the NSO’s 7.4% FY26 estimate and ahead of a Feb. 27 GDP data rebase that could alter recent comparisons.
  • China’s growth is expected to slow to 4.4% in 2026, with subdued consumer confidence and a prolonged property slump weighing on activity.
  • The Bank says risks lean to the downside if trade barriers intensify or financial sentiment sours, and it warns growth remains too concentrated in advanced economies to reduce extreme poverty.