The conflict in the Middle East is expected to slow global growth to the lowest rate since the onset of the COVID-19 pandemic amid higher energy prices, steeper inflation, and increased borrowing costs , according to the World Bank Group’s latest Global Economic Prospects report.
After withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East, which threatens to disrupt growth, says the latest World Economic Outlook report from IMF.
Global growth is likely to take a noticeable hit from the ongoing Middle East conflict, even if a ceasefire holds, according to an interview given by World Bank President Ajay Banga to Reuters.
The World Bank projects that growth in Gulf Cooperation Council (GCC) states will rise to 4.4% in 2026 and 4.6% in 2027.
