Global Economy Stabilizes, But Developing Economies Face Tougher Slog

February 16, 2025--Global Economy Stabilizes, But Developing Economies Face Tougher Slog
Long-Term Growth Outlook is Weakest Since Start of the Century
Developing economies-which fuel 60 percent of global growth-are projected to finish the first quarter of the 21st century with the weakest long-term growth outlook since 2000, according to the World Bank's latest Global Economic Prospects report.

Even as the global economy stabilizes in the next two years, developing economies are expected to make slower progress in catching up with the income levels of advanced economies.

The global economy is projected to expand by 2.7% in both 2025 and 2026, the same pace as in 2024, as inflation and interest rates decline gradually. Growth in developing economies is also expected to hold steady at about 4% over the next two years. This, however, would be a weaker performance than before the pandemic-and insufficient to foster the progress necessary to alleviate poverty and achieve wider development goals.

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Source: worldbank.org