Despite wars, frequent changes in trade policies and high interest rates, the global economy is growing slowly, but the pace of growth is not fast enough to provide relief to the world’s poorest countries.
According to World Bank estimates, the global economy will grow at a rate of 2.7 percent in 2025 and 2026. This growth rate is the same as for 2023 and 2024.
However, this growth rate is 0.4 percent lower than the average for 2010-2019. The reasons behind this recession include Covid-19 and Russia’s attack on Ukraine.
Global inflation, which has remained above 8 percent for the past two years, is projected to average 2.7 percent in 2025 and 2026. This is close to the target of many central banks.
It is noteworthy that there are 189 member countries in the World Bank. It works to reduce poverty and improve the standard of living of poor countries by providing loans and grants at low rates.
In low and middle income countries i.e. developing countries, the growth is expected to be 4.1 percent in 2025. Which may reduce to 4 percent in 2026. However, this increase is not considered sufficient to reduce global poverty.
The report said that growth in developing countries has been slowing for several years. It was 5.9 percent in the 2000s, 5.1 percent in the 2010s, and now it has come down to 3.5 percent in the 2020s.
If China and India are excluded, the country lags behind developed countries in terms of per capita economic growth.
