Oluwatobi Adu 
ABUJA, Nigeria – The global economy is showing unexpected resilience despite trade tensions and policy uncertainty, but this stability is concealing widening inequality between advanced and developing economies, according to the World Bank.
In its latest Global Economic Prospects report on Tuesday, the World Bank projects that global growth will slow slightly to 2.6 percent in 2026 before edging up to 2.7 percent in 2027, marking a modest improvement on earlier forecasts. The upgrade is largely driven by stronger-than-expected performance in major economies, particularly the United States.
However, the Bank warns that the apparent resilience masks deeper structural weaknesses. It projects that the 2020s could become the weakest decade for global growth since the 1960s, with long-term consequences for employment, poverty reduction and public finances.
While most advanced economies have surpassed their pre-pandemic income levels, about one in four developing economies remains poorer than in 2019, highlighting a persistent recovery gap.
Growth in 2025 was partly supported by a temporary rise in global trade ahead of anticipated policy changes and shifts in supply chains. These factors are expected to fade in 2026 as trade activity and domestic demand slow. Still, easing financial conditions, lower inflation and fiscal expansion in several large economies are expected to cushion the downturn, with global inflation forecast to decline to 2.6 percent in 2026.
“With each passing year, the global economy has become less capable of generating growth,” said World Bank Group Chief Economist Indermit Gill, warning that high debt levels and weak investment could undermine long-term resilience.
Developing economies are projected to see growth slow to 4 per cent in 2026, before a modest recovery in 2027. Low-income countries are expected to grow faster, averaging 5.6 percent, but the Bank cautions this will still be insufficient to close income gaps with advanced economies.
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Hussaini Ibrahim 