The World Bank’s latest report projects a significant slowdown in global economic growth, forecasting a rate of 2.5% in 2026 – the lowest since the start of the COVID-19 pandemic. This downturn is largely attributed to the ongoing conflict in the Middle East, which is driving up energy prices and exacerbating inflationary pressures worldwide. Consequently, borrowing costs are also increasing, further hindering economic activity. The report indicates a broader weakening of the global economy, with multiple factors contributing to the pessimistic outlook. These factors include persistent inflation and tighter financial conditions. The World Bank suggests that the Middle East conflict poses a substantial risk to the global economic recovery, potentially prolonging the period of subdued growth. Further details regarding specific regional impacts and revised forecasts are included in the full Global Economic Prospects report.