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The war in Iran will slow global economic growth more than expected: The World Bank anticipates the weakest global economic growth since the start of the COVID-19 pandemic. (File photo)
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The war in Iran will slow global economic growth more than expected: Given the devastating consequences, the World Bank anticipates the weakest global economic growth since the start of the COVID-19 pandemic.
For 2026, the institution is lowering its forecast by 0.1 percentage points to 2.5 percent, according to a report from the institution. Last year, the global economy had grown by 2.9 percent.
The reason for the downward revision is high inflation and rising energy prices, after free shipping and commodity trade in the Strait of Hormuz had virtually ground to a halt as a result of the conflict.
While drivers in Germany are annoyed by higher gas prices, the world’s poorest people are being hit particularly hard, according to the Washington-based institute.
For economically weak countries, this means that by the end of 2026, a quarter of developing countries will be poorer than in 2019, and among low-income countries, the figure is likely to be one-third. According to World Bank projections, about half of fragile and conflict-affected countries will have less money by the end of the year than they did in the year before the start of the COVID-19 pandemic.
At the same time, the World Bank is taking action itself: Shortly after the crisis began, it made between 20 and 25 billion U.S. dollars in emergency aid available. The development bank announced that it would make between $50 billion and $60 billion available to assist governments in developing countries and support agricultural businesses.
“Should the conflict and its economic consequences persist, financing from the World Bank Group could be increased to between 80 and 100 billion US dollars over a period of 15 months,” the statement continues.
11.06.2026, 15:36
