Middle East Clashes Could Hit The World Economy. Growth Could Be Slashed to 1.3%, World Bank Says

World Bank Chief Economist Indermit Gill said that if the war continues for another six months or longer, growth could fall from the projected 2.5% to as little as 1.3%. (Credit: Getty Images)

Global economic growth could slow dramatically next year if the war in the Middle East continues to escalate, with the World Bank's chief economist warning that a prolonged conflict could reduce worldwide expansion to just 1.3% in 2026, nearly half the institution's current baseline forecast.

In an interview with Reuters, World Bank Chief Economist Indermit Gill said the conflict poses one of the biggest threats to the global economy.