Quarter of developing countries poorer than in 2019, World Bank finds

"A quarter of countries in the developing world are poorer than they were in 2019 before the Covid pandemic, the World Bank has found. The Washington-based organisation said a large group of low-income countries, many in sub-Saharan Africa, had suffered a negative shock in the six years to the end of last year. The bank said global growth had downshifted since the pandemic, and the pace was now insufficient to reduce extreme poverty and create jobs where they're needed most."

"The US economy was estimated to have grown by 2.1% in 2025 and 2.2% in 2026 after upgrades of 0.7 and 0.6 percentage points respectively from the bank's last forecast in June. The bank's study showed the euro areas as a laggard, growing by just 0.9% in 2025 and 1.2% in 2026. Global growth is projected to remain broadly steady over the next two years, easing from 2.7% in 2025 to 2.6% in 2026 before returning to 2.7% in 2027,"

One quarter of developing countries have lower average incomes than in 2019, with many low-income states—especially in sub-Saharan Africa—experiencing negative shocks over the six years to the end of last year. Global growth has downshifted since the pandemic, leaving the pace insufficient to reduce extreme poverty and create jobs where they are most needed. Growth in emerging market and developing economies is forecast to slow from 4.2% to 4.0%. The US economy showed stronger performance, but the euro area lags. Recent increases in growth have been insufficient to offset prior slumps. Many affected countries have endured wars and famines. Stronger fiscal discipline and strict budget rules are needed for sustainable recovery.

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