# The World Bank says the Iran war is projected to slow global economic growth to its weakest pace since the Covid-19 pandemic, and renewed hostilities could cause it to slump further. Global economic growth is forecast at 2.5-percent this year, down from 2.9-percent in 2025. The bank warns that growth could fall to just 1.3-percent if energy supply disruptions intensify and financial markets come under stress. The World Bank also projects growth in developing countries at a post-pandemic low of 3.6-percent this year, down from 4.4-percent in 2025.
World Bank cuts its global growth forecast for 2026 to 2.5% due to the Iran war