The conflict in the Middle East is expected to slow global growth to the lowest rate since the onset of the COVID-19 pandemic amid higher energy prices, steeper inflation, and increased borrowing costs.
This is according to the World Bank Group’s latest Global Economic Prospects report.
According to the World Bank, global growth is forecast to slow to 2.5% in 2026, down from 2.9% in 2025.
Forecasts for two-thirds of economies have been downgraded relative to January of this year.
Global growth is expected to improve to 2.8% in 2027 but will remain at 0.4% point below the average during the 2010s.
Meanwhile, weak growth in developing economies has stalled progress toward advanced-economy income levels.
By 2028, developing economies other than China and India will have collectively experienced nearly a decade of no progress on narrowing their per capita income gap with advanced economies, the report finds.
Ayhan Kose, Deputy Chief Economist and Director of the Prospects Group at World Bank says the Middle East conflict between Iran, Israel and the US comes during a challenging period.
–Channel Africa–
