World Bank warns global growth stalls near pandemic-era lows amid war and debt

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.