World Bank cuts 2026 global growth forecast to 2.5% amid Middle East conflict

Thursday, June 11, 2026Business & MarketsWell-covered3 frames

The World Bank lowered its forecast for global growth in 2026 to 2.5% in its latest Global Economic Prospects report.
The 2026 forecast is down from 2.9% global growth in 2025 and is described as the weakest pace since the COVID-19 pandemic.
The World Bank attributed the downgrade to the economic effects of the Middle East conflict, including higher energy prices, rising inflation and increased borrowing costs.
The bank said growth forecasts were downgraded for about two-thirds of economies compared with its January assessment.
The World Bank warned that if energy supply disruptions become more severe and are accompanied by financial-market stress, global growth could slow to 1.3%.
Developing economies are among those most exposed to the slowdown, and the World Bank said weak growth is stalling progress in narrowing income gaps with advanced economies.
Several reports said the World Bank is making $50 billion to $60 billion available immediately for developing countries affected by the crisis, with total support potentially rising to $100 billion over 15 months.

How left and right are reading this

Both agree: A regional conflict is already feeding through energy prices, inflation, and borrowing costs into a broad global slowdown, with the heaviest risks falling on economies least able to absorb another shock.
They split on: Whether the story is mainly about the unequal damage a global slowdown will inflict on developing economies, or about the need for energy security and strategic resilience before regional conflict becomes a wider economic crisis.

The World Bank lowered its forecast for global growth in 2026 to 2.5% in its latest Global Economic Prospects report.
The 2026 forecast is down from 2.9% global growth in 2025 and is described as the weakest pace since the COVID-19 pandemic.
The World Bank attributed the downgrade to the economic effects of the Middle East conflict, including higher energy prices, rising inflation and increased borrowing costs.
The bank said growth forecasts were downgraded for about two-thirds of economies compared with its January assessment.
The World Bank warned that if energy supply disruptions become more severe and are accompanied by financial-market stress, global growth could slow to 1.3%.
Developing economies are among those most exposed to the slowdown, and the World Bank said weak growth is stalling progress in narrowing income gaps with advanced economies.
Several reports said the World Bank is making $50 billion to $60 billion available immediately for developing countries affected by the crisis, with total support potentially rising to $100 billion over 15 months.

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