World Bank sees Middle East conflict cutting growth to 1.3%
The World Bank says the ongoing Middle East conflict might slow global economic growth to just 1.3% by 2026, less than half of the 2.9% recorded last year.
If fighting continues and energy supplies or trade routes get hit, things could get rough worldwide.
Tensions between the US and Iran have already led to more military action and shipping disruptions, especially around the crucial Strait of Hormuz.
Indermit Gill warns 4.5% inflation risk
Longer conflict could push global inflation up to 4.5%, mainly because energy and food would get pricier.
Indermit Gill from the World Bank also pointed out that about 40% of low- and middle-income countries are already close to debt trouble, which means governments might have to cut back on basics like health care, education, or infrastructure, especially tough for countries still recovering from COVID-19's economic impact.