The World Economic Situation and Prospects 2026 will present global and regional economic outlooks for the year ahead, highlighting the need for global cooperation and policies to support growth and advance progress towards the Sustainable Development Goals.
The report finds that the world economy faces the risk of a prolonged period of slower growth compared with the pre-pandemic era, with current growth failing to deliver broad-based development gains, leaving many countries, communities, and households behind.
Geopolitical risks, continuing policy uncertainty and fiscal challenges cloud the global economic outlook. In 2025, a sharp rise in United States tariffs unsettled the trade environment, but the world economy proved more resilient than expected. In 2026, global growth is expected to moderate as weaker international trade is only partially offset by continued support from monetary easing.
Inflation has eased considerably in most economies, yet rising cost of living continues to strain household budgets and exacerbate inequality. Risks of renewed supply disruptions remain elevated — stemming from conflicts, climate related disasters, trade fragmentation, and geopolitical tensions — adding to global uncertainty.
In East Asia, economic growth is expected to moderate in the near term. Export performance in 2025 benefited from front-loading of shipments ahead of U.S. tariffs, while private consumption was supported by resilient labour markets and easing inflationary pressures. Looking ahead, the temporary export boost from front-loading will fade, but domestic demand is expected to remain relatively robust, underpinned by supportive monetary and fiscal measures. Regional inflation is projected to edge up modestly in 2026 but remains at a low level.
Speakers:
Hamza Ali Malik
Director, Macroeconomic Policy and Financing for Development Division
Economic Affairs Officer, Macroeconomic Policy and Financing for Development Division.