Eco
The World Bank predicts that escalating geopolitical tensions will slow global economic growth to its weakest pace since the COVID-19 pandemic. The Bank warns renewed hostilities could push the global economy into a deeper decline. In a report released Thursday, the Bank clarified global growth is projected to reach 2.5% by 2026, a decrease from 2.9% in 2025. It noted any new escalation or extended disruptions in commodity flows could result in additional price increases, worsening inflationary pressures, food insecurity, and triggering financial instability alongside a broader economic slowdown. The Bank cautioned that if energy supply disruptions become more severe and coincide with significant financial pressures, global growth could drop to 1.3% in 2026. These developments are accompanied by a sharp increase in oil, gas, and fertilizer prices, as shipping through the Strait of Hormuz continues to face disruptions.
