The World Bank has cut its global growth forecast and warned that developing economies risk a "lost decade" as the war involving Iran, the United States and Israel drives up energy costs, fuels inflation and threatens food security across large parts of the world.
In its latest Global Economic Prospects report, the World Bank said global growth is expected to slow to 2.5% in 2026, down from 2.9% this year, while inflation is projected to rise to 4%. The lender downgraded growth forecasts for roughly two-thirds of the world's economies, citing disruptions to energy markets and trade routes linked to the conflict.
