Breaking news

World Bank Forecasts Global Economy To Grow 2.7% In 2025 And 2026, Marking A Period Of Stabilization

by THEFUTURE.TEAM

January 17, 2025

The global economy is projected to grow by 2.7% in 2025 and 2026, maintaining the same pace as in 2024, according to the latest report from the World Bank. This steady growth signals a phase of stabilization, with inflation and interest rates expected to gradually decrease.

For developing economies, growth is expected to remain resilient over the next two years, holding steady at around 4%. However, this growth is still constrained compared to pre-pandemic levels, raising concerns about the ongoing challenge of poverty reduction and broader development goals.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The World Bank highlighted that developing economies, which account for 60% of global growth, are likely to conclude the first quarter of the 21st century with the weakest long-term growth prospects since 2000. The first decade of the century saw remarkable growth, but the aftermath of the 2008 financial crisis, along with other global challenges, has slowed down progress.

Economic integration has weakened, as foreign direct investment (FDI) inflows and GDP share in developing economies are now roughly half of what they were in the early 2000s. Meanwhile, global trade restrictions have surged in 2024, with new barriers reaching five times the average of the 2010-2019 period. As a result, global economic growth has diminished, dropping from 5.9% in the 2000s to 5.1% in the 2010s, and now to 3.5% in the 2020s.

In a statement, Indermit Gill, the World Bank’s chief economist, expressed concern over the future challenges facing developing economies: “The next 25 years will be tougher than the last 25. Most of the factors that once boosted their rise have faded. In their place, we now face tough headwinds: high debt, weak investment, slow productivity growth, and the escalating costs of climate change.”

The report also noted the potential impact of US President-elect Donald Trump’s plan to implement a 10% tariff across a wide range of imports. This could further hinder an already sluggish global economic recovery.

However, there is still hope for stronger-than-expected growth if the world’s largest economies, particularly the US and China, regain momentum.

The increasing importance of developing economies is evident in the shifting global economic landscape. Developing nations now represent 45% of global GDP, up from just 25% in 2000. This growth is largely driven by rapid urbanization, industrialization, and technology adoption in regions like Asia, Africa, and Latin America.

Key factors fueling this expansion include the rise of the middle class, infrastructure development, and an expanding services sector. The World Bank reports that more than 40% of exports from developing economies now go to other developing nations, a significant increase from 20% in 2000. Additionally, these countries are becoming crucial sources of capital flows, remittances, and development aid to others.

M Ayhan Kose, the World Bank’s deputy chief economist, emphasized that developing economies must adopt bold, innovative policies to capitalize on new opportunities for cross-border cooperation amid a landscape shaped by policy uncertainty and escalating trade tensions.

The Future Forbes Realty Global Properties

Cyprus’ Strong Youth Employment Rate Still Does Not Guarantee Early Independence

by THEFUTURE.TEAM

September 16, 2026

Young people in Cyprus have a relatively high employment rate, but they leave the parental home later than the EU average, according to Eurostat data.

Cypriots left home at an average age of 27 in 2025, compared with 26.3 years across the EU. At the same time, 72.3% of people aged 20 to 29 in Cyprus were employed, well above the EU average of 65.5%.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Strong Employment Does Not Mean Early Independence

Only nine countries recorded higher youth employment rates than Cyprus. Iceland led at 85.3%, followed by the Netherlands at 84%, Malta at 82.1%, Switzerland at 78.3% and Germany at 77%.

Norway recorded 76.5%, Ireland 76.1%, Denmark 74.8% and Austria 74.6%. Eurostat said countries where young people leave home earlier generally tend to have higher youth employment rates.

Southern Europe Sees Later Moves

Finland had the lowest average age for leaving the parental home at 21.4 years, followed by Denmark at 21.8 and Estonia and Lithuania at 22.7. Croatia recorded the highest average at 31.5 years, followed by Greece and Slovakia at 30.9. Spain and Italy both stood at 30.2 years.

Across the EU, the average has remained close to 26 since 2002, rising only slightly from 26.2 years in 2024 to 26.3 years in 2025.

Cyprus Labour Market Is Cooling

The figures come as Cyprus’ labor market shows some signs of easing, although demand for workers remains relatively strong by European standards.

Separate Eurostat data showed Cyprus had the EU’s largest annual decline in its job vacancy rate in the second quarter of 2026. The rate fell to 2.6% from 3.3% a year earlier, but remained above the EU average of 2.0% and the euro area average of 2.1%.

Cost Of Living Remains A Factor

Housing and other living costs can also affect how quickly young workers establish independent households. Eurostat reported that Cyprus’ household consumption price level was 89.2% of the EU average in 2025.

A relatively lower overall price level does not eliminate affordability pressures for people on modest incomes. For younger workers, the issue can be whether wages are sufficient to cover rent, utilities, food and other basic expenses.

Cyprus therefore combines relatively high youth employment with a later transition to independent living, suggesting that access to work and the ability to afford a separate household do not always move together.