The World Bank lowers its forecast for global economic growth for 2026 to 2.5%, describing it as the weakest pace since the COVID-19 pandemic. The cut is linked to expanding economic spillovers from the war in the Middle East, which it says disrupts energy supplies and contributes to higher costs. Multiple reports say the bank downgrades growth outlooks for about two-thirds of countries in its half-yearly Global Economic Prospects. The World Bank estimates global growth at 2.7% in 2025, before the 2026 slowdown. In its outlook, it also warns that inflation is expected to rise amid the conflict’s effects, with headline inflation averaging around 4% in 2026. Several sources add that, under a more adverse scenario where energy disruptions worsen or spread to markets, growth could fall further to around 1.3%. Energy and commodity-price pressures feature in the bank’s projections, including an expected increase in commodity prices in 2026 compared with a previously lower expectation. The bank highlights that countries in West Asia, including the United Arab Emirates and Iraq, face among the biggest forecast revisions.
World Bank cuts global growth forecast to 2.5% on Middle East war risk
The World Bank lowers its forecast for global economic growth for 2026 to 2.5%, describing it as the weakest pace since the COVID-19 pandemic. The cut is linked to expanding economic spillovers from t...
- The World Bank cuts its global growth forecast for 2026 to 2.5%, the weakest since the COVID-19 pandemic.
- The downgrade is attributed to economic spillovers from the war in the Middle East, including energy supply disruption and higher costs.
- The bank says it downgrades growth forecasts for roughly two-thirds of countries in its Global Economic Prospects report.
- It projects headline inflation averaging about 4% and expects commodity prices to rise in 2026.
- In a downside scenario, the World Bank warns global growth could drop to about 1.3% if energy disruptions spread further.
In a report, the World Bank said commodity prices are expected to rise by 22% in 2026, in contrast to the 7% decline expected in January
2 months agoThe World Bank has cut its global growth forecast for 2026 to 2.5 per cent due to the war in the Middle East.
2 months agoThe World Bank has cut its global growth forecast for 2026 to 2.5 per cent due to the war in the Middle East.
2 months agoThe World Bank has cut its global growth forecast for 2026 to 2.5 per cent due to the war in the Middle East.
2 months agoThe World Bank on Thursday lowered its global growth forecast to its lowest level since the pandemic, warning of the expanding economic impacts of the war in the Middle East on countries around the globe.Worldwide growth is now forecast to drop to 2.5 percent in 2026, from 2.9 percent a year earlier, with headline inflation averaging four percent, the multilateral lender said in its Global Economic Prospects report.
2 months agoThe bank lowered forecasts for two-thirds of countries as a result of the war, with the biggest cuts affecting the United Arab Emirates, Iraq and other countries in the West Asia
2 months ago
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