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World Bank Predicts Global Economic Growth to Slow to 2.4% in 2026.

International | Dated: 08 Nov 2025

The World Bank released its updated global economic forecast, predicting that global economic growth will slow down to 2.4% in 2026, driven primarily by persistent high inflation, elevated interest rates, and geopolitical conflicts. While the forecast for developing economies remains relatively strong (led by India), the report warns of increasing global debt levels and the risk of widening income inequality. The World Bank urged governments to focus on fiscal consolidation and structural reforms to enhance long-term productivity and resilience against external shocks.

🎯 Key Highlights:

  • The World Bank predicts global growth will slow down to 2.4% in 2026.
  • The slowdown is attributed to high inflation and elevated interest rates.
  • The report urges governments to focus on fiscal consolidation and structural reforms.

💡 Other Important Facts:

  • Developing economies, including India, are expected to remain growth outliers.
  • The report emphasized investment in human capital and green transition.
  • Geopolitical tensions remain a significant downside risk to the forecast.

📚 Test Your Knowledge:

What is the World Bank's predicted global economic growth rate for 2026?

Correct Answer: 2.4%

🚀 Quick Recap:

About World Bank

  • (i) Headquarters: Washington D.C., USA (ii) Goal: Reduce poverty and boost shared prosperity.
  • (iii) Report: Global Economic Prospects (iv) Key Concern: Rising global debt levels.