UnitedDepartmentof Economic andSocial AffairsNationsWorld EconomicSituation andProspects 2026MID-YEARUPDATE
World EconomicSituationand Prospects 2026MID-YEARUPDATEThe World EconomicSituation andProspectsasofmid-2026updatesthe World Economic Situation and Prospects2026released on 8 January 2026. The reportis preparedby the Global Economic Monitoring Branch in theEconomic Analysis and Policy Division of the United NationsDepartment of Economic and Social Affairs,UnitedNations
World EconomicSituation and Prospectsas of mid-2026SummaryThe globaleconomy is under stress asthe crisis inportfolio outflows and tighter external financingthe Middle East clouds the growthoutlook stokesconditionsif the conflict persists.Central banks infationary pressures,.and adds touncertaintareexpected to hold rates higherfor longer toprojected at2.5percentin2026and 2.8 percentiscal pressures from weaker growth alongsidecessarvexpenditurestocushioncrisisimpactstificial intelligencelikelv tofullv offsetwidespreadbutlookis most challenging forfertilizer,and food prices higherglobalsupply chains.Globalinfationisnexpected toreach3.9Dercentin206.percentage points above the January forecasid flowsand mountingdebt-servicecostshese pressures threaten to reverse hard-wordevelopment gains and further slow progressvolatility has increased, with risks of renewed
ContentsSummary.TablenGlobalmacroeconomictrends,Globaloverview..Fiqures1Growth ofeconomic output.Inflation...Internationalfinance..gas33International trade and develome......3Price indices of selected commodite......4 Growthofgobalindustral nductin andLabourmarketsMonetarypolicy11JanuaryandMay2026;Fiscalpolicy.Industrialpolicy.groups..Internationalcooperation,17Valatityofsecedfinancal andcommadiymarketindicators,quarterly averag......18 Nonresidentpotfoliofowsto emerging巧19Productivity growthin a changing world,9Share ofmigrationstockintheGulfCoonerationCoundil countries, byregionoforigi...Productivity growthfor shared prosperity andtheSDGs10 Straitof-Hormuztranstvolurme andBaltic901ExchangeDirtyTankerIndex.....11 World merchandisetrade growth by category...Developed econom..12Centalbankmonetarypliy stances..13 General government fiscal balance,by countrygroun13Europe.14 Tenyear governmentbond yldsinselectedNaveloned Asia and the Pacif.c.........飞3KEconomies in transitionI15 Labour prouctiv.....·Developing ecomi....16 Growih oflabourproductvty inselectedAfrica......FastAsia.....18Growthinarosfvedcapitalfomation.11South.s.19Changesinsklsasgusehuman cepialin.WestemAsia.20 R&Dinvestrentsasashare of @D...S
Global macroeconomictrendsGlobaloverviewbarrel through mid-2026, before easing graduallytoward $80 perbarrelin the second half oftheThe crisis in the Middle East hasdeliveredyearand declining modestlv into 2027 amid,another majorshock to the world economy,gradually improving supply. Prices areexpectedtesting the resilience of global growth, stokingto stav above pre-confict levels as lingeringinflationary pressures and further challengingincertainty and unresolved infrastructurethe prospects for sustainable devel...
