The numbers are in, and they are damning.
The global economy is on track to record its worst decade of growth since the 1960s, the World Bank declared Thursday in its June 2026 Global Economic Prospects report — with little chance of a turnaround before the 2030s. The sweeping assessment found nearly one out of every two developing economies since 2019 has failed to close the income gap with the world’s wealthiest nations. By the end of this year, one-quarter of all developing economies, one-third of low-income economies, and half of fragile and conflict-affected states will be poorer than they were on the eve of the COVID-19 pandemic.
“Barring a miracle, the 2020s will prove to be what their ominous opening foreshadowed: a lost decade,” wrote Indermit Gill, the World Bank’s senior vice president and chief economist, in the report’s foreword.
The proximate cause of the latest blow is a conflict in the Middle East that has sent energy markets into upheaval, pushed Brent crude to an average of $94 a barrel — up 36% from 2025 — and reignited inflationary pressures across developing regions just as many central banks had begun to ease rates. Global growth is now projected to slow to just 2.5% in 2026, the weakest pace outside of outright recession in nearly 20 years. In a severe downside scenario — prolonged energy disruptions compounded by financial stress — that number could collapse to 1.3%.
