©️photo : Sedat Suna/Getty Images
Washington, 11 June 2026.- The war in Iran is the most important shock to the world economy since the Covid-19 pandemic, according to the latest World Bank forecasts. The institution believes that this conflict risks a lasting slowdown in global growth and further weakening the most vulnerable economies.
In its new report released this week, the World Bank forecasts global economic growth of 2.5 per cent in 2026, up from 2.9 per cent in the previous two years. This would be the lowest rate of progress observed since the health crisis of 2020, reported Washington Post.
The institution attributes this slowdown to the rise in energy and raw materials prices caused by tensions in the Middle East, including disruptions related to the Darmuz Strait, a strategic transition for world oil trade.
The costs of oil, gas, fertilizers and several industrial products have increased sharply, putting pressure on both developed and developing economies.
« The world economy does not collapse, but it slows down significantly. « said Ayhan Kose, Deputy Chief Economist of the World Bank, confirms the newspaper.
According to him, many countries are approaching this new crisis with limited room for manoeuvre after several years of pandemic, armed conflict and trade tensions.
Compared to its January projections, the World Bank has reduced growth prospects for nearly two thirds of the world economies. Among the countries most affected by these revisions are Turkey, Bangladesh and South Africa.
The institution warns that prolonged conflict could lead to several developing countries in a period of slow growth and sustained economic stagnation.
W.E.
