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World Bank Upgrades Economic Growth Outlook

(MENAFN) The World Bank has elevated its worldwide economic expansion projections on Tuesday, pushing 2026 estimates from 2.4% to 2.6% and lifting 2027 forecasts from 2.6% to 2.7%.

According to the institution's Global Economic Prospects report, the international economy has demonstrated greater durability than analysts anticipated, weathering trade friction and political unpredictability.

"Last year, stockpiling of traded goods, strong risk appetite, and a surge in artificial intelligence (AI) spending supported activity, while supply chains adapted to rising trade barriers," the report stated.

The analysis highlighted that this economic staying power is most evident in stronger-than-projected US performance, which represents roughly two-thirds of the upward adjustment in the 2026 outlook.

However, the report warned that if current trajectories continue, the 2020s are poised to become the slowest-growing decade for the world economy since the 1960s.

Worldwide inflation is anticipated to decline to 2.6% in 2026, driven by softening employment markets and decreasing energy costs, the World Bank projections show.

US and Eurozone economies set for stronger expansion
The financial institution upgraded America's growth outlook from 1.6% to 2.2% for 2026, while maintaining the 2027 forecast at 1.9%.

The Eurozone received similar upward adjustments, with 2026 estimates climbing from 0.8% to 0.9% and 2027 projections rising from 1% to 1.2%.

China's growth forecasts also saw positive revisions, with 2026 expectations jumping from 4% to 4.4% and 2027 predictions increasing from 3.9% to 4.2%.

Türkiye's economic growth projections for both years were revised higher, reaching 3.7% from 3.6% in 2026 and 4.4% from 4.2% for 2027.

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