The World Bank has revised downward its forecast for global economic growth in 2026, projecting the world economy to expand by 2.5 percent, compared with an estimated 2.9 percent growth in 2025. The new projection marks one of the weakest growth rates seen since the global economic slowdown experienced in 2019.
The revised outlook was presented in the World Bank’s latest Global Economic Prospects report, which highlights a series of challenges weighing on economic activity across the globe. According to the report, ongoing instability in the Middle East, elevated energy costs, persistent inflationary pressures, and higher borrowing expenses are slowing the pace of global recovery.
The report warns that economic conditions could deteriorate further if disruptions in energy markets spill over into the financial sector. Under such a scenario, global growth could decline sharply to as low as 1.3 percent.
The World Bank also identified growing uncertainty surrounding international trade policies and increasing geopolitical tensions as major threats to economic stability. Despite these concerns, the institution noted that greater investment in artificial intelligence and the broader adoption of advanced technologies could help stimulate productivity and support stronger economic growth in the coming years.
