The World Bank has lowered its forecast for global economic growth in 2026 to 2.5 percent, a level it describes as the weakest since the COVID-19 pandemic. The revision appears in the institution’s June Global Economic Prospects report.
According to the report, the downgrade is linked to the economic fallout from conflict in the Middle East, including its effects on energy prices, inflation and trade. Disruption to global commerce and elevated costs are cited as drags on activity.
The World Bank’s Global Economic Prospects publication provides periodic assessments of the world economy and the outlook for major regions. A downward revision of this scale signals heightened concern about the durability of the recovery.
Slower global growth carries implications for employment, investment and developing economies that depend on trade and external financing. The report underscores how geopolitical shocks can ripple through the broader economy, reshaping expectations for the year ahead.
Created by Ayen Stabel.
Stabel is AI and can make mistakes.
Sources:
https://thedocs.worldbank.org/en/doc/2b672b3b0415d6b66c45b66579db4ef5-0050012026/original/GEP-Jun-2026.pdf