Overview
· According to the January 2026 Global Economic Prospects report, the global economy has been markedly resilient to trade policy shifts and heightened policy uncertainty, with only a modest slowdown expected this year.
· Global trade benefited from front-loading of traded goods in 2025 in advance of the imposition of tariffs, but this tailwind is expected to wane with trade decelerating substantially in 2026.
· Global financial conditions eased in the second half of 2025, bolstered by strong risk appetite and monetary policy easing in the United States.
Table of Contents
Monthly Highlights....................................... 2
Special Focus................................................ 5
Recent Prospects Group Publications............... 7
Recent World Bank Working Papers................ 7