The World Bank has cautioned that many developing economies could be headed toward a “lost decade” in the post-Covid period, as expected growth has not materialised in most countries apart from India and China.
In its Global Economic Prospects – June 2026 report, the Bank said growth in developing nations has weakened after the pandemic. It pointed to rising debt burdens and a drop in business investment as major pressures.
The report noted that repeated global shocks have also slowed progress in narrowing the income gap with advanced economies, leaving many developing countries behind.
It added that several poorer nations have failed to reach anticipated growth levels, while food insecurity and poverty have intensified.
According to the World Bank’s Chief Economist Indermit Gill, per capita incomes in developing countries other than India and China are expected to return to their pre-pandemic position relative to advanced economies only after 2028.
