Global Economic Prospects - World Bank

Regional Perspectives: Outlook and Risks

Emerging market and developing economy (EMDE) regions proved more resilient to last year’s trade tensions than expected, with trade supported by the temporary front-loading of exports and domestic demand underpinned by easier global financial conditions. Nevertheless, prospects over 2026–27 are uneven across regions and remain generally subdued amid a less favorable global trade environment. The challenge of generating sufficient job opportunities for the 1.2 billion young people who will reach working age in EMDE regions by 2035 is expected to intensify. Risks to the outlook remain tilted to the downside, including those from renewed trade frictions and policy uncertainty, tighter global financial conditions, elevated fiscal vulnerabilities, rising geopolitical tensions and conflict, and climate- and public-health-related shocks.

Outlook Charts

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