The World Bank, in its latest Global Economic Prospects report, has revealed that the global economy is rebounding despite ongoing trade wars and policy uncertainties.

The report attributes this recovery to strong resilience in recent months, even in the face of tougher sanctions and tariffs imposed on several countries.

Global growth is projected to remain stable over the next two years, easing to 2.6 percent in 2026 before rising slightly to 2.7 percent in 2027. According to the bank, this positive outlook is largely driven by stronger-than-expected performance in major economies, particularly the United States, which accounts for nearly two-thirds of the upward revision to the 2026 growth forecast.

By the end of 2025, almost all advanced economies had restored per-capita incomes to levels above those recorded before the pandemic. However, roughly one-quarter of developing economies remain poorer than they were in 2019.

The report noted that growth in 2025 was supported by a surge in trade ahead of anticipated policy changes, as well as rapid adjustments in global supply chains.

Indermit Gill, Chief Economist and Senior Vice President for Development Economics at the World Bank, said the global economy faces a delicate balance.

“Over time, the global economy has become less capable of generating strong growth while simultaneously showing resilience to policy shocks. Sustaining both resilience and dynamism is challenging without stressing public finances and credit markets,” he said.

He warned that global growth is likely to remain slower than during the turbulent 1990s, while public and private debt levels remain at record highs. “To avoid stagnation and rising unemployment, governments must accelerate private investment and trade liberalization, rein in public consumption, and prioritize investment in technology and education,” he added.

Meanwhile, the World Bank forecasts that global inflation will ease to 2.6 percent in 2026.