The World Bank Group yesterday projected two-year 5.6 per cent growth in low-income countries driven by stronger domestic demand, exports recovery, and easing inflation.
In its latest Global Economic Prospects report, the global lender said despite 2026–27 growth prospects, the income gap between developing and advanced economies will continue to narrow.
“Per capita income growth in developing economies is projected to be three per cent in 2026, about a percentage point below its 2000-2019 average. At this pace, per capita income in developing economies is expected to be only 12 per cent of the level in advanced economies,” it said.
Global inflation is projected to edge down to 2.6 percent in 2026, reflecting softer labour markets and lower energy prices. Growth is expected to pick up in 2027 as trade flows adjust and policy uncertainty diminishes.
In…
