The World Bank forecasts global economic growth to slow to 2.5% this year, citing the Middle East war, rising inflation, and borrowing costs. The report highlights potential disruptions to oil flows, increased fertilizer prices, and a widening gap between developed and developing nations.
The World Bank forecasts global economic growth to slow to 2.5% in 2026, the lowest since the COVID-19 pandemic, due to Middle East conflict and rising energy prices. Inflation is expected to rise to 4.0% this year.
A statement highlights that BRICS nations now account for 50% of global economic growth, while the G7 countries contribute less than 20%.
The OECD warns that the Middle East conflict is dampening global economic growth prospects. A prolonged war could slow growth to 2.1% in 2025, impacting developing nations and potentially leading to higher unemployment.
Global oil prices reached a four-year high of over US$122 per barrel following reports of potential US military strikes on Iran, sparking fears of significant supply disruptions in the Middle East.
