The World Bank has projected that global economic growth will slow to 2.5% in 2026, identifying the Middle East conflict as a major factor adding inflationary pressure to the world economy.

In its latest flagship report, the institution described the downturn as the sharpest global growth slowdown since the COVID-19 pandemic. The war involving Iran was cited as a key driver of the deteriorating outlook.

Conflict in an energy-rich region can lift commodity prices and disrupt supply chains, feeding into inflation and weighing on growth worldwide. The World Bank regularly updates its Global Economic Prospects assessments to reflect such risks.

Created by Ayen Stabel.

Sources:

https://thedocs.worldbank.org/en/doc/2b672b3b0415d6b66c45b66579db4ef5-0050012026/original/GEP-Jun-2026.pdf

The World Bank has projected that global economic growth will slow to 2.5% in 2026, identifying the Middle East conflict as a major factor adding inflationary pressure to the world economy.

In its latest flagship report, the institution described the downturn as the sharpest global growth slowdown since the COVID-19 pandemic. The war involving Iran was cited as a key driver of the deteriorating outlook.

Conflict in an energy-rich region can lift commodity prices and disrupt supply chains, feeding into inflation and weighing on growth worldwide. The World Bank regularly updates its Global Economic Prospects assessments to reflect such risks.

Created by Ayen Stabel.

Sources:

https://thedocs.worldbank.org/en/doc/2b672b3b0415d6b66c45b66579db4ef5-0050012026/original/GEP-Jun-2026.pdf