All articles tagged with #world bank
A visualization ranks seven major oil supply disruptions; the March 2026 closure of the Strait of Hormuz caused a record 10.1 million barrels per day loss, far exceeding disruptions like the Iranian Revolution, while other large shocks include the 1973–74 Arab oil embargo and the Kuwait invasion, with data from the IEA and World Bank and highlighting the chokepoint's impact on global markets.
The World Bank plans to phase out lending to China by 2031, capping new financing at up to $2 billion before Beijing graduates from the institution. The move, driven by bipartisan U.S. pressure and reflecting China’s growing economy, follows a decline in lending from about $2.4 billion in 2017 to roughly $750 million in 2025 and will end China’s borrower status with the Bank. Unlike Poland’s transition, the Chinese plan has no carve-outs for Ukraine or nuclear-energy financing, and it signals broader scrutiny of multilateral lending to rising economies.
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.
The Trump Board of Peace has no cash in its official Gaza reconstruction fund despite pledges from the US and other countries and backing from the World Bank and UN; money has not been deposited because the reconstruction phase has not begun. Donors reportedly pledged billions (US up to $10B; Qatar, Saudi Arabia, UAE each at least $1B), but the fund remains empty. An EU-UN assessment estimates Gaza will need around €60–€71B over the next decade, and questions about transparency have surfaced amid reports of donations entering a JPMorgan account.
Despite pledges totaling about $17 billion from the US and other leaders, the World Bank–backed Board of Peace has not deposited any funds; donations are flowing through a JPMorgan account not required to report to the World Bank, with several major pledges frozen or not yet spent, and the board says it will report its finances later as it continues to set up funding channels and operations in Gaza.
The World Bank warns that the Iran conflict is driving a global fertiliser shortage by lifting natural‑gas prices, increasing fertiliser costs and squeezing farmers’ margins, which could curb next year’s harvests even as Europe remains comparatively insulated for the current season. FAO notes shipping disruptions through the Strait of Hormuz are pressuring Asia and the Global South, risking higher food prices and inflation unless energy markets stabilise and fertiliser supply chains recover. Analysts say persistent high input costs could require tighter monetary policy in some economies, and experts call for urgent European action and a shift toward strategic autonomy over fertiliser inputs to stabilise the global food system.
European finance officials pressed Washington during the IMF-World Bank spring meetings to advance growth, energy security, Ukraine support, and a more integrated EU financial market, but the U.S. response centered on growth and a China-focused strategic rivalry, making Europe feel sidelined and prompting concerns about cross-Atlantic cooperation amid financial and geopolitical tensions.
The IMF lowers its global growth outlook and flags the Iran conflict as a lasting drag on the world economy, planning between $20–$50 billion in emergency balance‑of‑payments support while cautioning there will be no neat return to pre‑war conditions; the crisis drives energy costs higher, disrupts supply chains and undermines market confidence, with about 45 million people facing food insecurity. The World Bank also signals slower regional growth and says up to $25 billion can be mobilized quickly for affected developing countries, with as much as $60 billion available over the longer term.
About a quarter of developing countries are poorer now than in 2019 due to post-pandemic shocks, with many in sub-Saharan Africa; while some economies posted modest growth, global growth is slowing and not enough to reduce poverty. The World Bank notes China’s projected growth of about 4.4% this year and 4.2% next, and urges tighter budgets, more private investment and trade liberalization, and investment in technology and education to sustain growth amid high debt and aging populations.
The World Bank predicts the slowest decade for global growth since the 1960s, with forecasts lowered due to US trade tariffs and political uncertainty, but stops short of predicting a recession, highlighting increased economic challenges and potential for further growth slowdown.
The World Bank warns that the global economy is on track for its weakest decade since the 1960s, primarily due to the impact of President Trump's trade war and tariffs, which have slowed growth and increased uncertainty worldwide, with projections indicating the slowest growth since the 2008 financial crisis.
The World Bank has lowered its global growth forecast for 2025 to 2.3%, citing increased tariffs and trade uncertainties, with advanced economies and poor countries facing significant challenges; global trade growth is also expected to slow, and inflation is projected to rise above pre-COVID levels, though the risk of a recession remains low.
The World Bank has sharply lowered its global economic growth forecast for 2025 to 2.3%, citing trade uncertainty and tensions, especially between the US, China, and the EU, which could worsen the outlook if unresolved. The forecast is the slowest since 2008, with potential for improvement if major economies reach trade agreements.
The World Bank reports that the global economy will slow sharply in 2025 due to US trade policies, with growth projected at 2.3%, the weakest decade since the 1960s, though a recession is not expected.
The World Bank forecasts that growth in developing East Asia and Pacific will slow to 4.5% in 2024, down from 5.1% in 2023, with China's economy expected to moderate to 4.5% from last year's 5.2% expansion. The region's growth is outpacing the rest of the world but faces headwinds from China's slowing growth, high debt levels, and a slumping real estate sector. External factors such as global economic slowdown, protectionist policies, and high interest rates also pose risks. The report emphasizes the need for bold policy action to unleash competition, improve infrastructure, and reform education to boost the region's economy, while highlighting the potential for China's pro-market reforms to accelerate growth.