World Bank Forecast: Uneven Growth and Rising Debt Shape Global Economy in 2026

The World Bank has released its latest outlook for the global economy, projecting moderate growth across advanced and developing regions while warning that long-term sustainability challenges remain. Growth in developing economies is expected to slow slightly this year before picking up, driven by domestic demand and stabilising trade, yet remains below pre-pandemic averages. Despite this resilience, record levels of public and private debt, coupled with demographic pressures and labour market transitions, could constrain long-term prosperity without policy reforms. The World Bank emphasises that boosting productivity and labour participation — especially among the incoming cohort of young workers — will be central to achieving durable expansion, but this will require greater investment in education, infrastructure, and regulatory certainty.