The World Bank on Thursday lowers its global growth outlook, forecasting 2026 growth of 2.5%, the weakest rate since the Covid-19 pandemic. In its semiannual Global Economic Prospects report, the Washington-based lender links the downgrade to the expanding economic effects of the war in the Middle East, including potential disruptions to energy supply. The bank also warns that inflation is expected to rise and that borrowing costs could increase, contributing to slower growth. One report estimates global growth at 2.7% in 2025, while another indicates the 2026 forecast reflects a drop from a 2.9% rate a year earlier. Across countries, the World Bank says it has downgraded growth forecasts for around two-thirds of economies in the report’s coverage. It further cautions that the outlook could deteriorate if energy supply disruptions intensify, with growth potentially slowing to about 1.3%. In this view, the main risks to the forecast come from broader regional spillovers that affect commodity markets and overall macroeconomic conditions.