World Bank cuts 2026 global growth forecast to 2.5% citing US-Iran conflict and economic pressures
By
Al Jazeera Staff
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Summary
The World Bank has cut its global growth forecast for 2026 to 2.5 percent from 2.9 percent, citing surging energy prices, rising inflation, and higher borrowing costs driven by the US-Iran conflict in the Middle East. The report warns this would be the slowest global economic growth since the COVID-19 pandemic, with the fragile ceasefire at risk of collapsing and further destabilizing the global economy.
Key quotes
· 3 pulledThe conflict in the Middle East is set to bring global economic growth to its slowest since the COVID-19 pandemic, the World Bank has warned.
The Washington-based institution cut its global growth forecast for 2026 to 2.5 percent from the 2.9 percent it had predicted in January, citing surging energy prices, rising inflation and higher borrowing costs.
The report highlights the significant economic costs of the conflict, which is at risk of flaring up again, as the fragile ceasefire
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