World Bank Warns Middle East Conflict to Push Global Growth Down to 2.5% in 2026

The latest World Bank Global Economic Prospects report warns that ongoing tensions in the Middle East will slow the world economy to its weakest pace since the COVID-19 pandemic. Global growth is now forecast to drop to 2.5% in 2026, down from 2.9% in 2025, before a modest recovery to 2.8% in 2027. Most economies have seen their forecasts downgraded amid higher energy costs, rising inflation and tighter borrowing conditions. The report highlights disruptions to oil markets following the Strait of Hormuz closure, with Brent crude expected to average $94 a barrel in 2026. It also forecasts higher food prices on account of rising fertiliser costs and warns that inflation could climb to 4.0% this year. The World Bank stands ready to provide up to $100 billion in financing and guarantees if pressures persist.

Use The App To Win ₦1m

Stories are shared by community members. This article does not represent the official view of NaijaWorld — the author is solely responsible for its content.