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Global Economic Prospects, January 2026

The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risk...

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Main Author: World Bank
Format: Online
Language:en_US
Published: Washington, DC: World Bank 2025
Online Access:https://openknowledge.worldbank.org/entities/publication/bb904ec6-730f-4dd9-b1af-ad3153ee1616
https://hdl.handle.net/10986/44034
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author World Bank
author_facet World Bank
author_sort World Bank
collection Publicaciones institucionales emblemáticas
description The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support.
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spelling wb-10986-440342026-04-10T14:08:28Z Global Economic Prospects, January 2026 World Bank The global economy is facing another substantial headwind, emanating largely from an increase in trade tensions and heightened global policy uncertainty. For emerging market and developing economies (EMDEs), the ability to boost job creation and reduce extreme poverty has declined. Key downside risks include a further escalation of trade barriers and continued policy uncertainty. These challenges are exacerbated by subdued foreign direct investment into EMDEs. Global cooperation is needed to restore a more stable international trade environment and scale up support for vulnerable countries grappling with conflict, debt burdens, and climate change. Domestic policy action is also critical to contain inflation risks and strengthen fiscal resilience. To accelerate job creation and long-term growth, structural reforms must focus on raising institutional quality, attracting private investment, and strengthening human capital and labor markets. Countries in fragile and conflict situations face daunting development challenges that will require tailored domestic policy reforms and well-coordinated multilateral support. 2025-12-05T14:52:35Z 2026-01-13 2026-01-13 Serial https://openknowledge.worldbank.org/entities/publication/bb904ec6-730f-4dd9-b1af-ad3153ee1616 World Bank. 2026. Global Economic Prospects, January 2026. Washington, DC: World Bank. License: Creative Commons Attribution CC BY 3.0 IGO https://hdl.handle.net/10986/44034 10.1596/978-1-4648-2267-4 bb904ec6-730f-4dd9-b1af-ad3153ee1616 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf application/epub+zip application/vnd.openxmlformats-officedocument.spreadsheetml.sheet application/octet-stream application/pdf application/pdf application/pdf application/pdf application/pdf application/pdf Washington, DC: World Bank
spellingShingle World Bank
Global Economic Prospects, January 2026
title Global Economic Prospects, January 2026
title_full Global Economic Prospects, January 2026
title_fullStr Global Economic Prospects, January 2026
title_full_unstemmed Global Economic Prospects, January 2026
title_short Global Economic Prospects, January 2026
title_sort global economic prospects january 2026
url https://openknowledge.worldbank.org/entities/publication/bb904ec6-730f-4dd9-b1af-ad3153ee1616
https://hdl.handle.net/10986/44034
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