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7h ago

World Bank Lifts Global Outlook, Raises U.S. 2026 Growth Forecast to 2.2%

The update points to resilience concentrated in advanced economies, leaving many developing countries with too little momentum.

Vehicles pass in front of the World Bank building in Washington, D.C. on May 20, 2022. Picture taken with a long exposure. REUTERS/Raphael Satter
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The impact of President Trump’s tariffs has been less severe than expected, the World Bank said
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Overview

  • The bank now projects global growth of 2.6% in 2026, a 0.2-point upgrade from June, following 2.7% in 2025 and a return to 2.7% in 2027.
  • U.S. GDP is expected to grow 2.1% in 2025 and 2.2% in 2026, helped by AI-related investment, larger tax incentives and trade adjustments that offset tariff drags.
  • The report says tariff disruptions proved less severe as firms front-loaded imports, delayed exposure, rerouted trade and used mitigation tools.
  • Growth in emerging market and developing economies is forecast to slow to 4.0% in 2026, or 3.7% excluding China, prompting a warning that the 2020s could be the weakest decade since the 1960s.
  • China’s economy is forecast to expand 4.4% in 2026 and 4.2% in 2027, reflecting subdued confidence, a prolonged property slump and softer labor markets.