Washington, 24 August 2026 – The World Bank has released its updated Global Economic Prospects report, projecting world gross domestic product (GDP) growth to hold steady at a resilient 2.6% in 2026, matching the 2.5% expansion recorded in 2025. The economic forecast highlights that despite tightening global trade restrictions, elevated real interest rates, and geopolitical tensions in the Middle East and Eastern Europe, global economic activity remains anchored by resilient private consumption, corporate investment in clean energy infrastructure, and robust industrial manufacturing across developing Asian economies.
The economic momentum across the East Asia and Pacific region remains the primary engine of global economic expansion, with regional GDP projected to expand by 4.8% in 2026. Developing Asian economies, led by Vietnam, Malaysia, Indonesia, and India, are contributing over 60% of total global economic growth. These nations are benefiting from strong intra-Asian trade corridors, expanding bilateral free trade agreements, and massive foreign direct investment inflows into semiconductor assembly, green mobility manufacturing, and artificial intelligence data center infrastructure.
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