### 📈 World Bank: Global Resilience vs. Developing Economy Stagnation

The World Bank’s January 2026 Global Economic Prospects report reveals a resilient but deeply divided global economy. While advanced nations recover, 1 in 4 developing economies remains poorer than in 2019. • Global Growth Forecasts Global growth is projected at 2.6% in 2026 (upwardly revised) and 2.7% in 2027. Despite resilience, the 2020s are on track to be the weakest decade for growth since the 1960s. Global inflation is expected to ease to 2.6% by 2026. • Developing Economy Challenges Growth in developing nations is set to slow to 4.0% in 2026 from 4.2% in 2025. Per capita income in these regions remains only 12% of advanced economy levels. A massive "jobs challenge" looms with 1.2 billion young people entering the workforce this decade. • Regional & Sectoral Impact South Asia: Growth is projected to slow to 5.8%–6.2% in 2026 due to trade uncertainty and tech disruptions. Sri Lanka Context: Based on provisional data, Sri Lanka is expected to regain its 2018 real GDP levels by 2026, with growth stabilizing around 3.1%–3.5%. Focus sectors: Apparel & textiles and tourism-related services remain critical for recovery, though high food prices and debt servicing (103.9% debt-to-GDP in 2024) persist as risks. • Fiscal & Policy Priorities Restoring fiscal credibility is urgent; public debt in emerging markets is at a 50-year high. The report advocates for strict fiscal rules to improve budget balances by 1.4% of GDP over five years.