The World Bank has warned that global economic growth may slow further in 2026, citing persistent inflation, geopolitical tensions, and reduced investment in developing economies.
In its latest global outlook report released on Tuesday, the institution noted that while some advanced economies show signs of recovery, many low- and middle-income countries continue to face debt pressures, weak currency performance, and limited fiscal space.
The report highlighted rising borrowing costs and ongoing conflicts as major threats to economic stability. According to the World Bank, developing nations are particularly vulnerable to external shocks, including fluctuations in energy prices and reduced access to international financing.
The institution called on governments to implement structural reforms, strengthen social safety nets, and promote private sector growth to mitigate the impact of economic slowdown.
Economists warn that without coordinated global action, the slowdown could deepen inequality and stall development progress in vulnerable regions.
