The Digest:
A new World Bank report reveals that more than a quarter of emerging market and developing economies have per capita incomes lower than 2019 levels, highlighting a stark and persistent divide in the global economic recovery. The January 2026 Global Economic Prospects report notes that while nearly 90% of advanced economies have surpassed pre-pandemic income levels, many low-income and conflict-affected countries are still struggling, reversing years of progress. The bank warns that the 2020s are projected to be the weakest decade for global growth since the 1960s, driven by structural pressures like weaker productivity and high debt burdens.
Key Points:
- The stagnation or decline in per capita income deepens poverty, limits access to essential services, and erodes living standards for millions.
- The income gap risks fueling social unrest, political instability, and increased migration pressures from struggling regions.
- The slowdown reflects deep-seated issues like weak productivity and high debt, not temporary shocks, requiring long-term structural solutions.
- The disparity threatens to widen the global development gap, leaving a significant portion of the world's population behind.
- The fragile outlook underscores an urgent need for coordinated global action on trade, debt, and investment to prevent a "lost decade."
The findings call for urgent policy reforms and international cooperation to reignite inclusive growth and prevent a permanent divergence in global fortunes.
Sources: Premium Times
