Doha, Qatar: Two economists said that although the World Bank’s recently released semiannual report on global economic prospects pointed to weak global output growth in 2026, it nevertheless confirmed that the global economy appears more resilient and better equipped to overcome crises.
Speaking to Qatar News Agency (QNA), the experts noted that while the World Bank report projected global output growth to slow slightly to 2.6 percent this year, compared with 2.7 percent last year, the upward revision relative to earlier estimates indicates that the global economy has become more capable of absorbing shocks, particularly those linked to trade and fiscal policies. They explained that this improvement reflects the ability of major economies to avoid slipping into recession rather than a broad-based recovery.
The report, which reviewed key indicators and anticipated challenges facing global growth and highlighted disparities in its impact between advanced and developing economies, warned that the improvement in global growth does not extend equally to all countries. It clarified that advanced economies are the main contributors to growth, while developing countries and smaller economies are expected to face greater challenges in achieving strong and sustainable growth. This means that the improvement in global growth will have only a limited effect on reducing extreme poverty in those countries.
Economists believe that this divergence in global growth suggests that the gap between advanced and developing economies may persist or widen, making development and poverty reduction an ongoing concern for the global economy.
Commenting on the indicators cited in the World Bank report, economic expert Dr. Abdullah Al Khater told QNA that the global economy has shown greater resilience and an improved ability to overcome recent crises, such as disruptions to trade through international corridors. He noted that while significant impacts on global markets -especially oil markets- had been expected, oil prices remained stable and favorable for the global economy, helping to prevent a rise in global inflation rates.
Dr. Al Khater added that this created an unexpected level of stability, enabling the global economy to adapt to crises and sharp fluctuations in the geopolitical landscape, making it more rational and mature. He noted that fears and perceptions are no longer the main drivers of oil prices, contributing to stability and moderate economic growth.
He explained that the World Bank based its growth projections on traditional assumptions, but the coming years are expected to be fundamentally different, as the global economy will increasingly rely on technological developments as core infrastructure across all economic activities. This, he said, will depend on countries, companies, and economic institutions capable of effectively integrating rapid technological advancements, which are likely to achieve exceptional growth rates.
Dr. Al Khater expected global growth rates to rise in sectors such as electric vehicles and artificial intelligence applications, leading to a significant reduction in manufacturing costs and translating into overall global economic growth.
He added that the Chinese economy will be among the biggest beneficiaries, while the United States will remain capable of competing. Europe, he said, is likely to remain outside the race for higher growth rates, while the Middle East has numerous projects that will contribute to raising global growth rates.
He noted that if global production costs are reduced, growth rates could exceed 2.7 percent, with countries contributing to technological advancements reaping the greatest economic benefits.
Dr. Al Khater also pointed out that the economies of countries such as Vietnam, South Korea, and Japan may possess advanced economic solutions, which could significantly boost growth rates in those economies in particular and in the global economy overall.
He added that traditional assumptions previously used to assess global economic growth will no longer form the basis for such assessments over the next five years. Instead, artificial intelligence, smart robotics, and autonomous driving will become the most important indicators for forecasting global economic growth.
The economist stressed that raising global economic growth and making it more impactful requires attention to the structural aspects of economic policies, reinforcing the concept of technological globalisation and expanding its scope, and resolving the issue of tariffs at the global level due to their disruptive impact on supply chains and commercial transport activity. He added that adopting international commercial law would enable the world to achieve higher global growth rates in the current year.
Concluding his remarks to QNA, Dr. Abdullah Al Khater said that 2026 will be an exceptional year for the use, development, and integration of artificial intelligence and future technologies into local and global economies, as well as for assessing their efficiency in economic operations.
A recent World Bank report on global economic prospects paints a mixed picture of the world economy, showing weaker growth but greater resilience in the face of ongoing shocks, according to a Jordanian academic.
Dr Omar Gharaibeh, a Professor at the Faculty of Business at Al Al Bayt University in Jordan, said the report indicates that global growth is expected to slow to 2.6% in 2026, down from 2.7% in 2025, but noted that upward revisions to earlier forecasts suggest the global economy has become more capable of absorbing shocks.
Speaking to QNA, Dr Gharaibeh said the improvement reflects the ability of major economies to avoid recession rather than the start of a broad-based recovery, particularly amid trade and fiscal policy uncertainties.
He highlighted that nearly two-thirds of the upward revision in growth forecasts is driven by stronger-than-expected performance in the United States, which is projected to grow by 2.2% this year. This, he said, points to increasing reliance on a single economic engine, while other regions - especially Europe and developing economies - remain less able to drive global growth.
Dr Gharaibeh noted that while global GDP per capita in 2025 has exceeded pre-pandemic levels by around 10%, marking the fastest recovery in six decades, this headline figure masks deep disparities. About a quarter of developing countries still have lower per capita income levels than in 2019, particularly among the poorest nations.
He added that rising trade restrictions and high external debt levels in parts of Africa are making it harder for these economies to close the gap, resulting in what he described as non-inclusive growth.
According to Dr Gharaibeh, there is no contradiction between economic resilience and slowing growth. "Resilience means the global economy has not collapsed despite repeated shocks," he said, "but it has not regained its previous dynamism." He echoed the World Bank's assessment that the global economy is now less capable of achieving strong growth, yet more robust in dealing with political and trade-related uncertainty.
He argued that the report exposes deeper structural challenges, including weak investment and productivity, rising trade barriers and mounting debt burdens in some countries. He called for a global policy shift towards supporting trade, stimulating private investment, and increasing spending on technology and human capital, rather than relying solely on short-term crisis management.
Economic reports suggest that while the World Bank's latest outlook offers a cautiously positive signal on the global economy's ability to withstand shocks, growth remains insufficient to significantly reduce extreme poverty in developing countries, particularly given the stark disparity between advanced and emerging economies.
