World Economic Situation and Prospects as of mid-2026

The report, produced by the United Nations Department of Economic and Social Affairs, updates the World Economic Situation and Prospects 2026, released on 8 January 2026.

HIGHLIGHTS

Global growth is projected to slow to 2.5 per cent in 2026 before edging up to 2.8 per cent in 2027—a downgrade from January forecasts and well below pre-pandemic norms. The Middle East conflict weighs heavily on the outlook, and with its duration and the pace of any recovery in energy flows highly uncertain, risks are tilted to the downside. Solid labour markets, resilient consumer demand, and AI-driven trade and investment in select economies provide only partial countervailing support.
The energy shock has halted the global disinflation trend, with higher energy prices feeding through to broader costs across the economy. In developing economies, inflation is projected to rise from 4.2 per cent in 2025 to 5.2 per cent in 2026. In developed economies, inflation is forecast to increase from 2.6 per cent in 2025 to 2.9 per cent in 2026, edging further above central bank targets in most countries.