The World Bank has revised its forecasts for the UAE's economic growth in 2026, projecting a 5% increase (compared to 5% in December 2025 forecasts), while raising its forecast for 2027 to 5.1% (compared to 5% in December forecasts). According to the 'Global Economic Prospects' report released today, the economy is expected to grow by 5% in 2026 and rise to 5.1% in 2027. The report projects that growth in Gulf Cooperation Council countries will reach 4.4% in 2026 and 4.6% in 2027. It also forecasts that growth in the Middle East, North Africa, Afghanistan, and Pakistan will increase to 3.6% in 2026 and continue to improve, reaching 3.9% in 2027. In its latest edition of the 'Global Economic Prospects' report, the World Bank noted that the global economy has shown greater resilience than expected, despite ongoing trade tensions and policy uncertainty. The report states that global growth will remain relatively stable over the next two years, slowing to 2.6% in 2026 before rising to 2.7% in 2027, an upward revision from June forecasts. This resilience reflects better-than-expected growth, particularly in the United States, which accounts for about two-thirds of the upward revision to the 2026 forecast. The report warns that if these materialize, the 2020s are on track to become the weakest decade for global growth since the 1960s. It emphasizes that slower growth widens the global living standards gap: by the end of 2025, per capita income in most advanced economies had surpassed 2019 levels, while about a quarter of developing economies remained below. In 2025, global growth benefited from a trade surge that preceded policy changes, alongside rapid adaptation of global supply chains. This boost is expected to fade in 2026 due to declining trade and domestic demand. The report projects global inflation will ease to 2.6% in 2026, reflecting weaker labor markets and falling energy prices. Growth is expected to improve in 2027 as trade flows adjust and policy uncertainty recedes.
