World Bank Revises Down Global Growth Forecast for 2026

The World Bank has lowered its projection for global economic growth in 2026 to 2.5%, a decrease from its previous 2.9% forecast for 2025, marking the lowest rate since the COVID-19 pandemic. The institution attributes this revised outlook primarily to the ongoing conflict in the Middle East, which has led to sharp increases in energy prices. These factors are expected to renew inflationary pressures and prompt tighter monetary policies, particularly affecting energy-importing economies and those directly impacted by hostilities.