The World Bank expects only moderate growth in the world economy in 2026. Inflation and a sharp increase in energy prices after the crisis in the Strait of Hormuz are holding back the recovery.
The World Bank (SB) expects the weakest global economic growth this year since the start of the coronavirus pandemic. The reason for the downward revision is high inflation and rising energy prices after shipping in the Strait of Hormuz came to a virtual standstill as a result of the war with Iran. TASR informs about it based on the report of the DPA agency.
On Thursday, the World Bank cut its global growth forecast for 2026 by 0.1 percentage point to 2.5%. Last year, the world economy grew by 2.9%. While motorists in wealthier countries are worried about higher petrol prices, residents in the poorest parts of the world are being hit particularly hard, the institution warned. According to her, for economically weak regions, this means that by the end of 2026, a quarter of developing countries will be poorer than in 2019, in the case of low-income countries, it will probably be a third. Around half of the unstable and conflict-affected countries will probably have less money available by the end of 2026 than before the start of the pandemic, the SB further stated.
