Global growth to slow modestly despite economic resilience - World Bank

13th Jan 2026 14:51

(Sharecast News) - The World Bank expects global growth to moderate slightly in 2026, despite the world economy showing "notable resilience" over the last year.

Publishing its latest semi-annual Global Economic Prospects report on Tuesday, the Washington-based body said the global economy had withstood "heightened trade tensions and policy uncertainty".

It continued: "Last year's faster-than-expected pace of growth capped a recovery from the 2020 recession unmatched in six decades, even if vulnerable emerging market and developing economics are lagging behind."

Looking to the current year and the organisation forecast world GDP growth would edge down, to 2.6% from an estimated 2.7% in 2025.

That was, however, better than its last forecast in June, for GDP growth of 2.4% in 2026.

It attributed the slowdown to firms scaling back inventory accumulation and tariff effects intensifying.

"Near-term risks to the global outlook are tilted to the downside," it warned. "Growth could falter it trade tensions escalate, barriers rise further or financial market sentiment deteriorates amid asset price declines, fiscal concerns or inflation surprises."

In the Eurozone, growth is forecast to fall to 0.9% from 1.4% in 2025 before rising to 1.2% in 2027.

In the US, GDP is expected be 2.2% this year before falling back to 1.9% in 2027. The World Bank estimates 2025 GDP to be 2.1% in the US.