Global Economic Prospects, June 2026

The World Bank Group's semiannual report on global, regional, and emerging market and developing economy growth prospects. The June 2026 edition projects global growth to slow to 2.5 percent in 2026, down from 2.9 percent in 2025, reflecting the effects of the Middle East conflict, higher energy prices, stronger inflation, increased borrowing costs, and persistent geopolitical tensions. Growth in Latin America and the Caribbean is projected at 2.2 percent in 2026 and 2.5 percent in 2027. The report warns that higher fertilizer prices will have knock-on effects on food prices and that fiscal pressures may constrain countries' ability to reduce poverty and food insecurity and create jobs. It also examines rising public debt, borrowing costs, and the fiscal vulnerability of commodity-exporting economies. Policy recommendations include strengthening fiscal sustainability, debt management, domestic revenue mobilization, economic diversification, and institutional frameworks, including credible fiscal rules and well-governed sovereign wealth funds with stabilization mandates.