Page 7 - Policy Economic Report - Feb 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Economy in Focus

1. A snapshot of the global economy

Global economic growth

According to World Bank, global growth is estimated to have averaged 2.7 percent in 2025, 0.4 percentage
point above June projections, in part because of stronger than-expected growth in major economies. The
growth is forecast to edge down to 2.6 percent in 2026, driven by a notable slowdown in demand for
traded goods and softening domestic demand in many major economies. It is then set to pick up slightly
to 2.7 percent in 2027, as domestic demand benefits from earlier monetary policy easing and trade
improves amid declining uncertainty.

After remaining at 1.7 percent in 2025, growth in advanced economies is expected to edge down to 1.6
percent this year, as the effects of higher trade barriers weigh on activity, and remain at that pace in 2027.

Growth in Emerging Market and Developing Economies (EMDEs) was stronger than expected in 2025, at
an estimated 4.2 percent. Activity in China proved more robust than anticipated, mostly on account of
fiscal stimulus and increased shipments to non-U.S. markets. Growth in EMDEs is forecast to decelerate
to an average of 4 percent in 2026–27, as the projected slowdown in China is partly offset by a gradual
pickup in other EMDEs next year.

Figure 1: Global GDP growth

Source - World Bank Page | 6

February 2026