The World Bank said in its June 2026 Global Economic Prospects update that global growth is forecast to slow to 2.5% in 2026 from 2.9% in 2025.

The lender said that pace would mark the weakest global economic performance since the COVID-19 period.

It also outlined a downside scenario in which more severe war-related energy supply disruptions, combined with substantial stress in financial markets, could reduce global growth to 1.3%.

The forecast and scenario were disclosed in the World Bank’s latest assessment of the world economy.