The global economy faces a projected slowdown, with growth anticipated to reach just 2.5% in 2026. This would represent the weakest performance since the COVID-19 pandemic.
The projected economic deceleration is linked to the ongoing US-Israel war in Iran. This conflict is expected to disrupt global energy markets significantly.
As a consequence of these disruptions, Brent crude oil prices are forecast to climb to approximately $94 a barrel. The anticipated impact extends to inflation, which could escalate to around 4%.
In response to these potential economic challenges, the World Bank is reportedly preparing to allocate up to $100 billion. This financial support is intended to protect vulnerable economies from the severe repercussions of these global events.
Source: Down To Earth