World Bank Raises 2026 Global Growth Forecast to 2.6 Pct

Washington, Jan. 13 (Jiji Press)–The World Bank on Tuesday raised its global economic growth forecast for 2026 to 2.6 pct from 2.4 pct projected in June last year, citing contributions from the U.S. economy’s steady performance. In its latest Global Economic Prospects report, the Washington-based institution put the world’s real gross domestic product growth for 2027 at 2.7 pct, up 0.1 percentage point. World Bank chief economist Indermit Gill suggested that growth is expected to remain stable through 2027. However, the report showed concern over the widening growth gap between advanced and developing economies, saying that the economic recovery from the COVID-19 pandemic was led by developed economies. The projection on Japan’s real GDP growth was kept unchanged at 0.8 pct for 2026 and 2027, slower than 1.3 pct for 2025. Still, the World Bank expects consumption and investment in the country to maintain momentum despite the Bank of Japan’s tighter monetary policy. Economic growth in the United States is estimated at 2.2 pct for 2026, up 0.6 point, thanks to large-scale tax breaks although the high tariff policy of the administration of U.S. President Donald Trump is expected to gradually weigh on consumption and investment. Growth is expected to slow to 1.9 pct in 2027. Eurozone growth is projected at a meager 0.9 pct for 2026, due to the impacts of high U.S. tariffs as well as the region’s declining competitiveness reflecting soaring energy prices and the euro’s appreciation. Growth in the region is expected to improve to 1.2 pct in 2027, supported by a recovery in exports and investment. China’s real GDP is seen growing 4.4 pct this year, up 0.4 point from the June 2025 forecast, on the back of active fiscal spending and strong exports. However, growth is seen decelerating to 4.2 pct in 2027 due to structural problems such as deteriorating productivity and high debts. END [Copyright The Jiji Press, Ltd.]