Overview
- In its January Global Economic Prospects, the World Bank now projects global growth of 2.6% in 2026, edging up to 2.7% in 2027 after a modest upgrade from mid‑2025 forecasts.
- Roughly two‑thirds of the improvement to the 2026 outlook stems from the United States, which outperformed earlier expectations.
- The Bank says 2025 strength drew on a burst of trade, inventory stocking ahead of tariffs, firmer risk appetite, and heavy investment in new technologies such as AI, with those effects expected to wane in 2026.
- Growth in developing economies is forecast to slow to 4.0% in 2026, and gaps in living standards persist, with many countries still below pre‑pandemic per‑capita income levels.
- Global inflation is expected to ease to 2.6% in 2026, and the report urges credible fiscal rules, expanded private investment, and business‑climate reforms to manage high debt and a looming jobs challenge.