World Bank finds one in four developing countries poorer than 2019

The World Bank has found that a quarter of countries in the developing world are poorer than they were in 2019, before the Covid pandemic. The Washington-based organisation said a large group of low-income countries, many in sub-Saharan Africa, suffered a negative shock in the six years to the end of last year.

The bank said global growth had 'downshifted' since the pandemic and that the pace was now 'insufficient to reduce extreme poverty and create jobs where they’re needed most'. It estimated economic growth in emerging market and developing economies would slow from 4.2% last year to 4% next year.

The bank said global growth was proving more resilient than anticipated, helped by a better-than-expected US performance, but it expected modest progress in 2026 as both developed and developing economies struggle to make gains. The bank projected global growth to remain broadly steady over the next two years, easing from 2.7% in 2025 to 2.6% in 2026 before returning to 2.7% in 2027.

It estimated the US economy grew by 2.1% in 2025 and would grow 2.2% in 2026 after upgrades to its previous forecast, while the euro area was shown as a laggard at 0.9% in 2025 and 1.2% in 2026. The report said many of the countries with lower average incomes have endured wars and famines that delayed recovery, and recent growth increases have been insufficient to override an earlier slump.

Key Topics

World, World Bank, Developing Countries, Sub-saharan Africa, Indermit Gill, Us Economy