World Bank projects global growth to fall by up to 1% point

Concerns are mounting over the future of the global economy. World Bank (WB) President Ajay Banga stated that the conflict between the United States and Iran could lead to global economic growth falling by as much as 1 percentage point below existing forecasts. According to the WB's scenario analysis, even if the war ends early, global economic growth is predicted to fall by 0.3-0.4 percentage points compared to previous projections, with the decline potentially widening to 1 percentage point if the conflict enters a prolonged phase. The WB also explained that the dispute could push inflation rates up by as much as 0.9 percentage points.

World Bank President Ajay Banga identified whether the ceasefire leads to sustainable peace and the normal reopening of the Strait of Hormuz, a critical waterway for maritime oil transport, as key variables determining the direction of the global economy. Peace talks scheduled to take place in Pakistan this weekend will be a significant turning point for the global economy's trajectory.

The WB is considering utilizing existing funds from its 'Crisis Response Window' program to support developing countries with weak economic foundations, particularly small island nations vulnerable to surging energy prices.