World Bank: Global Growth This Year Slowest Since COVID-19 Onset
Global economic growth in 2026 is projected to be the weakest since the start of the pandemic, according to the latest World Bank report. Key factors include Middle East conflict and rising energy costs.
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The World Bank released its Global Economic Prospects report on Thursday, cutting its 2026 growth forecast to 2.5%, down 0.1 percentage point from January. Last year, the global economy expanded by 2.9%. The forecast for 2027 stands at 2.8%.
Energy Prices and Impacts
According to the report, the closure of the Strait of Hormuz due to hostilities has severely disrupted energy markets. The average price of Brent crude oil is expected to reach $94 per barrel in 2026, a 36% increase from the previous year. The bank also warns of a significant rise in fertilizer prices, which will push up food prices.
Inflation and Downside Risks
The World Bank projects global inflation to rise to 4% this year, up from 3.3% in 2025. However, it highlights substantial downside risks: if energy supply disruptions prove more severe than currently anticipated, accompanied by financial stress, growth could slow to 1.3% and inflation could hit 4.4%.
