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Date: 04-jun-2025 | By: Nuztrend Team
The World Bank released its latest Global Economic Prospects report this week, projecting that global economic growth will stabilize at 2.7% for the 2025–2026 period. While the figure signals a level of recovery and resilience in the post-pandemic era, experts caution that this rate of expansion may fall short in meeting the development needs of the world's most vulnerable economies.
According to the report, the 2.7% growth projection reflects a modest but steady rebound, supported by improving supply chains, stabilizing inflation, and easing geopolitical tensions. However, this pace is still below the historical average of pre-COVID levels, which typically ranged between 3.0% and 3.5% annually.
Advanced economies, such as the United States and the Eurozone, are expected to grow at a slower rate—around 1.8%—while emerging markets and developing economies are projected to expand by approximately 4.0%. However, within these groups, performance remains highly uneven.
The report highlights several persistent challenges that could dampen long-term growth prospects. These include sluggish investment, limited access to credit in developing nations, climate-related disruptions, and weakening global trade momentum.
Additionally, the World Bank notes that interest rate hikes in major economies, intended to combat inflation, have led to tighter global financial conditions. This has made it harder for low-income countries to borrow and invest in critical infrastructure and services.
To address these disparities, the World Bank calls for coordinated international efforts, including debt relief, targeted investment in green technologies, and stronger support for low-income countries through multilateral institutions.
Looking ahead, the Bank remains cautiously optimistic but emphasizes that achieving inclusive, long-term development will require deliberate policy reforms. These include improving education, boosting productivity, and ensuring equitable access to resources and opportunities across all economies.
While the 2.7% forecast may be a positive sign of recovery, experts argue that unless more is done to close the gap between high-income and low-income countries, the global economy could be heading toward a two-speed future—one of resilience for the few and stagnation for the many.
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