World Bank warns global growth stalls near pandemic-era lows amid war and debt
TL;DR
Global growth is projected at about 2.5% this year as the war in the Middle East, inflation and higher borrowing costs weigh on activity; two-thirds of countries are downgraded, with developing economies facing a potential 'lost decade' unless liquidity and financing are provided, and inflation could rise to around 4% in 2026 while fertiliser prices surge. The World Bank has up to $100 billion available for the hardest-hit countries, but debt in developing nations has climbed to about 70% of GDP, raising risks if commodity flows deteriorate.
- Global growth is slowing to lowest level since pandemic, says World Bank The Guardian
- Iran war is the worst hit to the global economy since covid, World Bank says The Washington Post
- US-Iran war to pull global economy to post-COVID low: World Bank Al Jazeera
- World Bank cuts global growth outlook to 2.5%, warns of drop to 1.3% if war fallout spreads to markets Reuters
- Global Economy Could Slow to Half Its 2025 Pace if War Continues, Warns World Bank WSJ
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