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World Bank lifts global growth outlook but warns of weakest decade since 1960s
Key Takeaways (30s Read)
The World Bank has raised its growth forecasts but warns of the weakest decade since the 1960s.
The World Bank's latest report shows that the global economy is more resilient than previously expected, but remains uneven and weak. The global GDP growth rate is forecasted to slow slightly to 2.6% in 2026, down from 2.7% in 2025. This is attributed mainly to stronger-than-expected performance in the U.S., where growth is expected to rise to 2.2% in 2026 from 2.1% in 2025.
However, the World Bank warns that the overall growth rate will be the weakest of the decade since the 1960s. Particularly, growth in emerging markets is forecast to slow to 4.0% in 2026. The report suggests a narrowing of the growth engines, emphasizing the need for sustainable growth drivers for the global economy.
AI Analyst
AI Opinion
"The World Bank's report brings an important warning that while U.S. growth exceeds expectations, the overall growth is expected to reach the lowest level since the 1960s. Particularly concerning is the chronic weakness in emerging market growth, heightening risks ahead. The reliance on a narrow set of growth engines is becoming evident. Attention is focused on the U.S. trends, especially the need for policy consistency. This holds significant implications for markets, as robust policies will be required to support diverse growth drivers. It appears to be a prudent moment for investors to carefully choose investment opportunities while maintaining resilience."
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