The World Bank projects 2.5 per cent global growth rate in 2026 from 2.9 per cent growth rate recorded in 2025.
According to the projection in its latest Global Economic Prospects report released at the weekend, the World Bank said that the growth was expected to recover modestly to 2.8 per cent in 2027, but would remain below the average recorded during the 2010s.
It said that it was making available between $50 billion and $60 billion immediately through existing financing instruments, including $25 billion in pre-arranged funding.
The World Bank said that these resources were expected to support social safety nets, strengthen government finances and provide liquidity for businesses and farms affected by the crisis.
It disclosed that it will mobilise $100 billion over the next 15 months to help developing countries cope with the economic fallout from the escalating crisis in the Middle East.
“To date, over 30 countries are actively working with the World Bank Group to enhance readiness and enable a rapid response to the crisis under this response plan.
“If the conflict and its economic fallout persist, the World Bank Group can scale up its support to $80–100bn over 15 months,” it said.
GIK/APA