Forecast for this year downgraded to 2.5% and inflation expected to jump as a result of war in the Middle East

Global economic growth will slow to 2.5% this year as a result of the war in the Middle East – the weakest since the Covid pandemic – as inflation and borrowing costs rise, the World Bank has warned.

The Washington-based development bank has downgraded growth forecasts for two-thirds of countries in its half-yearly Global Economic Prospects report. The bank estimated that global growth was 2.7% in 2025.