The World Bank, in its latest Global Economic Prospects report, revealed that the global economy is rebounding despite ongoing trade wars and policy uncertainties.

According to the bank, this rebound is the result of strong resilience demonstrated in recent months amid tougher and stricter sanctions and tariffs imposed on some countries.

The report projects that global growth will remain stable over the next two years, easing to 2.6 percent before rising to 2.7 percent in 2027.

The bank also stated that the outlook is largely driven by stronger-than-expected performance in major economies, particularly the United States, which accounts for nearly two-thirds of the upward revision to the 2026 growth forecast.

By the end of 2025, the report stressed, almost all advanced economies had restored per-capita incomes above pre-pandemic levels.

However, about one-quarter of developing economies remained poorer than they were in 2019, it stated.

Growth in 2025 was supported by a surge in trade ahead of anticipated policy changes and rapid adjustments in global supply chains.

The Chief Economist and Senior Vice President for Development Economics at the World Bank, Indermit Gill, said; "Over time, the global economy has become less capable of generating strong growth while simultaneously showing resilience to policy shocks. Sustaining both resilience and dynamism is challenging without stressing public finances and credit markets.

"The world is set to grow slower than during the turbulent 1990s, all while carrying record public and private debt. To avoid stagnation and rising unemployment, governments must accelerate private investment and trade liberalization, rein in public consumption, and prioritize investment in technology and education.”

Meanwhile, global inflation is forecast to decline to 2.6 percent in 2026.

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