The World Bank released a series of economic updates and new financing commitments in the first days of July 2026, offering a detailed picture of economic conditions across developing economies in Africa, Asia, and the Middle East. The data reveals a mixed but generally resilient growth picture, with several countries posting strong GDP gains even as they face structural challenges in translating growth into broad-based employment and poverty reduction.
Papua New Guinea's economy expanded by 5.6 percent in 2025, one of the strongest performances in the Pacific region, according to the latest World Bank Economic Update released on July 2. The growth was supported by robust gold and liquefied natural gas production, alongside exchange rate reforms that improved the business environment beyond the resource sector. However, the report titled "Turning Growth into Jobs" warns that formal employment per capita has declined, with most new workers entering subsistence farming and informal work. The World Bank estimates that strengthening key agricultural value chains could generate around 330,000 additional formal jobs over the next decade and reduce poverty by around five percentage points, lifting an estimated half a million Papua New Guineans out of poverty.
In West Africa, Burkina Faso's economy demonstrated notable resilience amid persistent security challenges, achieving real GDP growth of 5.3 percent in 2025, up from 4.8 percent in 2024. Real GDP per capita also increased from 2.5 percent to 3 percent over the same period. The World Bank's June 2026 Burkina Faso Economic Update highlights that inflation turned negative in 2025 at minus 0.5 percent, compared to 4.2 percent in 2024, driven by lower energy prices and abundant agricultural production. Extreme poverty fell by five percentage points in 2025, the largest single-year drop since the COVID-19 pandemic. The country's fiscal deficit narrowed sharply from 5.8 percent of GDP in 2024 to 1.8 percent in 2025.
In the Middle East, Jordan recorded real GDP growth of 2.8 percent in 2025, maintaining macroeconomic stability despite a challenging regional environment. The World Bank approved a US$700 million loan on June 30 to support Jordan's efforts to unlock private investment, expand access to finance, and create jobs. The country received its first sovereign credit rating upgrade in over two decades in 2024, sustained again in 2025, reflecting steady reform progress under the government's Economic Modernization Vision.
Meanwhile, the World Bank approved US$150 million in financing on July 1 to support Sri Lanka's reform agenda aimed at boosting investment, strengthening competitiveness, and creating jobs. The Sri Lanka Reforms for Growth, Resilience and Openness Development Policy Operation marks a shift from economic stabilization toward supporting long-term growth. It backs reforms to reduce trade barriers, improve the investment climate, strengthen the financial sector, and expand women's employment. The World Bank currently supports 13 active projects in Sri Lanka totaling more than US$1.5 billion across key sectors.
These developments underscore the World Bank's assessment that developing economies are navigating a complex global environment with varying degrees of success. While commodity exporters such as Papua New Guinea and Burkina Faso have benefited from resource sector strength and improved policy frameworks, countries like Jordan and Sri Lanka are advancing structural reforms to attract private investment and create sustainable employment. The data highlights a common challenge across all these economies: converting macroeconomic gains into inclusive job growth remains a critical priority.
Sources: [imf.org/worldbank.org]
