Global Economic Growth Forecast Lowered Amidst Iran-Israel Conflict
Summary
The World Bank reports that global economic growth is projected to slow to 2.5% in 2026 due to the US-Israel war with Iran, with risks of further decline if the conflict escalates, impacting energy and food prices worldwide.
Key Points
- Global economic growth is projected to slow to 2.5% in 2026, the weakest since the COVID-19 pandemic.
- The US-Israel war with Iran is disrupting energy supplies, particularly through the Strait of Hormuz, impacting global oil, gas, and fertilizer prices.
- Rising prices of energy and food are expected to increase inflation, food insecurity, and financial crises globally.
- Developing economies will face weaker growth in 2025, with many unable to return to pre-pandemic income levels until after 2028.
