World Bank says global growth to hold at 2.7% as IDA21 replenishment targets poorest countries

At a World Bank Group noon briefing, Axel von Tratzenberg, senior managing director for partnerships and development policy for the World Bank Group, said the global economy is expected to expand by 2.7% in both 2025 and 2026 and summarized findings from the bank’s upcoming Global Economic Prospects report. He also reported results from the International Development Association’s 21st replenishment (IDA21), saying the cycle mobilized about $100,000,000,000 with roughly $23,700,000,000 in donor contributions.

The replenishment, von Tratzenberg said, will concentrate support for the poorest countries: “about 70% will go to Africa,” and roughly 40% of the IDA21 allocations are directed to fragile and conflict-affected states. He added that about 45% of IDA21 resources are earmarked for climate-related work, split roughly evenly between mitigation and adaptation.

Why it matters: the figures reflect the World Bank’s plan to scale financing for low-income and fragile countries as global growth remains below pre-COVID decade averages. Von Tratzenberg told reporters the bank expects developing economies to grow near 4% in 2025–26 while advanced economies grow around 1.7%, and that global inflation should decline toward 2.7% in the same…