Banga issued the warning on Friday during the 2026 IMF-World Bank Annual Meetings Plenary in Thailand, calling for closer coordination among countries to address the growing employment challenge.
He said the demographic shift would shape the future of the global workforce, urging governments and institutions to make sound decisions to create opportunities for young people.
“Over the next 10 to 15 years, 1.2 billion young people will arrive at a job market projected to offer only about 400 million jobs,” he said.
According to Banga, the future of development will depend on combining public finance, private investment, philanthropy and technology to meet the specific needs of individual countries.
Highlighting the World Bank Group’s efforts over the past three years, he said the institution had reduced project preparation time from 19 months to nine months and replaced 153 scorecard measures with 22 focused on impact.
He also cited more than $100 billion in additional lending capacity for the International Bank for Reconstruction and Development (IBRD), as well as an expanded co-financing pipeline covering about 250 projects over two years.
Banga said total financing exceeded $230 billion last year, while efforts to mobilise additional funding nearly tripled in lower-middle-income countries, quadrupled in upper-middle-income countries and more than doubled across Africa.
He added that almost 55 per cent of World Bank financing and mobilised private capital went to sectors including agribusiness, healthcare, tourism, energy, infrastructure and manufacturing.
On support for micro, small and medium-sized enterprises (MSMEs), Banga said the bank’s strategy aims to improve access to finance by using digital records, connecting smaller businesses with larger buyers and simplifying regulations.
He also highlighted initiatives to expand artificial intelligence adoption, connectivity and access to devices, alongside safeguards to support responsible technology use.
Other priorities include collaboration with the African Development Bank to provide electricity to 300 million people by 2030 and partnerships aimed at improving water security for up to one billion people.
Banga further announced plans for critical minerals-focused country compacts with multilateral development banks to support local industries in 20 countries. He said six multilateral development banks were also working on mechanisms to transfer investments to investors, thereby freeing up funds for new projects.
Reflecting on the origins of the World Bank, Banga paid tribute to its founders, who established the institution at the Bretton Woods Conference in New Hampshire, where delegates from 40 countries gathered during the Second World War.
“They understood something we must never forget: prosperity is not a prize one nation wins from another,” he said. “It is a fire that warms every house within reach.”
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