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Global economic reports for 2026 predict a slowdown in growth, with the global growth rate expected to decline to around 2.5%, marking the lowest level since the COVID-19 pandemic. This downturn is attributed to conflicts in the Middle East and rising energy prices, which fuel inflation and reduce growth opportunities in energy-producing countries and those affected by disputes. Additionally, growth in per capita income in emerging and developing markets is expected to slow to its lowest point since the pandemic, amid increasing debt pressures, weak investments, and declining job opportunities. Political risks and volatility in commodity markets are also intensifying. However, economic recovery is anticipated between 2027 and 2028, as energy supplies resume and monetary easing accelerates. Addressing current challenges will require policy measures to promote international cooperation, ensure fiscal sustainability, and minimize economic risks amidst ongoing market disruptions.
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