The World Bank said in its semi-annual Global Economic Prospects report on June 11 that it lowered its forecast for global growth in 2026 to 2.5% from 2.9% in 2025, describing the pace as the weakest since 2019.

The lender said the revision reflected higher energy prices, firmer inflation and increased borrowing costs linked to conflict in the Middle East. It also said the global economy is less resilient than in 2008 or 2018 and is facing pressure from policy uncertainty, inflation and elevated interest rates.

The report said the outlook could weaken further if energy supply disruptions deepen and financial markets come under severe strain.