The World Bank cut its global growth forecast on Thursday, blaming the Iran war and the energy shock it has unleashed. The bank now sees the world economy expanding 2.5 percent this year, down from 2.9 percent in 2025 and the weakest pace since the pandemic.
It warned that growth could sink to just 1.3 percent if energy supply disruptions prove worse than assumed and trigger financial stress. Oil, gas and fertilizer prices have all spiked while the Strait of Hormuz stays effectively blocked, lifting costs worldwide.
Sources: World Bank report via CNN.
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