Global growth will stabilize at 2.6 percent this year. Growth will remain stable for the first time in three years, despite the geopolitical crisis and rising interest rates. Such information has been obtained from the ‘Global Economic Prospects Report’ published by the World Bank.

However, in FY 2025-26, growth will pick up to 2.7 percent along with modest expansion in trade and investment.

This information was announced in a press release sent from the World Bank headquarters in Washington DC on Saturday (August 24).

Reflecting continued inflationary pressures, central banks in advanced economies and emerging markets and developing economies are likely to remain cautious in easing policy, the World Bank said. For example, interest rates will be significantly higher in the next few years than before the pandemic. Rising geopolitical tensions, further trade fragmentation and persistently high policy rates have some downside risks on the global outlook.