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World Bank cuts global growth outlook to 2.5%, warns of drop to 1.3% if war fallout spreads to markets
The bank said higher energy prices and uncertainty will slow growth, with Brent crude expected to average $94 a barrel this year.
- On Thursday, The World Bank reported that economic fallout from the Iran war will drag global growth to its weakest performance since the COVID-19 pandemic six years ago, reaching just 2.5% this year.
- Iran responded to United States and Israeli attacks in Feb by closing the Strait of Hormuz, through which a fifth of the world's oil and natural gas passes; the Persian Gulf also faces fertilizer trade disruptions.
- Developing and emerging markets face a post-pandemic low of 3.6% growth in 2026, as The World Bank downgraded forecasts for two-thirds of global countries, including European nations and India, which expects 6.6% expansion.
- The United States remains insulated from downgrades, with the World Bank expecting 2.2% growth this year, as energy production, tax cuts, and artificial intelligence investment shield the economy from broader global pressures.
- Americans remain frustrated by higher gasoline and other prices despite U.S. economic resilience, as the 189-country agency warns the global economy will struggle with conflict consequences throughout 2026.
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The World Bank expects global growth to slow to 2.5% in 2026 due to the conflict in the Middle East, according to projections released today. This rate of growth of the economy, to be realized, would be the weakest since the beginning of the covid-19, due to the conflict in the Middle East, which is raising energy prices, feeding inflation and increasing financing costs around the world, is read in the document. According to World Bank estimates…
·Portugal
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Global Economy Could Slow to Half Its 2025 Pace if War Continues, Warns World Bank
The global economy could grow this year at less than half its 2025 pace if the conflict in the Middle East leads to a lengthy reduction in energy supplies and a sharp fall in equity prices, the World Bank said Thursday.
·New York, United States
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Coverage Details
Total News Sources37
Leaning Left10Leaning Right6Center5Last UpdatedBias Distribution48% Left
Bias Distribution
- 48% of the sources lean Left
48% Left
L 48%
C 24%
R 28%
Factuality
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