New Delhi, Jan. 14 -- The global economy has shown stronger-than-expected resilience despite rising trade tensions, higher tariffs and policy uncertainty.However, micro, small and medium enterprises (MSMEs), particularly in developing countries, are likely to face a more difficult operating environment in 2026, according to the World Bank's Global Economic Prospects report released in January 2026.

Rising Pressures on Small Businesses

The report notes that slower global trade and continued tariff barriers are increasing competition in export markets and raising compliance costs for MSMEs. These factors are squeezing profit margins and adding to working capital pressures, especially in emerging markets and developing economies.

Economic...