The World Bank’s Global Economic Prospects report indicates that developing economies, which contribute 60% of global growth, are projected to experience their weakest long-term growth outlook since 2000.
Global growth is expected to slow to 2.7% in 2025 and 2026 while developing economies will maintain steady growth at around 4%. However, this growth is insufficient to meet poverty alleviation and development goals.
After rapid growth in the 2000s, progress slowed post-2008, with global trade restrictions and diminished foreign direct investment.
Developing economies, now accounting for 45% of global GDP, remain crucial but are still reliant on advanced economies for growth. To improve prospects, the World Bank advocates reforms, improved infrastructure, climate action, and stronger trade partnerships.