Africa’s catch-up with rich nations stalls as World Bank warns of “lost decade”

Africa's efforts to close the income gap with rich nations are stalling, with the World Bank warning of a potential "lost decade" for developing economies. In its June 2026 Global Economic Prospects report, the Bank cut global growth forecasts to 2.5 percent, citing weaker growth, rising debt, and global shocks. The warning is especially critical for Africa, where policymakers have battled inflation, currency weakness, and sluggish investment for five years.

"Barring a miracle, the 2020s will prove to be what their ominous opening foreshadowed: a lost decade, not just for a couple of outliers, but for dozens of developing economies," said Indermit Gill, World Bank chief economist. He added that nearly half of developing economies have failed since 2019 to narrow the income gap with prosperous nations. The Bank projects developing economies excluding China and India will remain about 6 percent below pre-pandemic per-capita GDP expectations by 2027, while high-income economies recover fully.