World Bank warns West Asia conflict will trim 2026 growth
The World Bank released a report warning that the ongoing conflict in West Asia is set to drag down global growth.
By 2026, it expects worldwide economic growth to dip to 2.5%, the slowest since the pandemic.
The fighting is shaking up energy markets, with oil prices predicted to jump 36% and average $94 a barrel this year.
World Bank sets aside $50bn-$60bn
Higher energy costs are likely to push global inflation up from 3.3% in 2025 to 4% in 2026.
Developing countries will feel the pinch too, as their growth slows from 4.4% to 3.6%.
Gulf economies are getting hit hardest, facing almost no growth at all because of direct impacts from the conflict.
On a brighter note, South Asia remains the fastest-growing region, although its growth is projected to slow to 6.3% in 2026 from 7% in 2025.
To help out, the World Bank has set aside $50 billion to $60 billion for immediate support and could boost that up to $100 billion if things get tougher globally.