{"id":59696,"date":"2026-06-13T11:13:43","date_gmt":"2026-06-13T19:13:43","guid":{"rendered":"https:\/\/www.antiwar.com\/blog\/?p=59696"},"modified":"2026-06-13T11:13:43","modified_gmt":"2026-06-13T19:13:43","slug":"trumps-iran-war-slowing-global-economic-growth-to-lowest-level-since-pandemic-world-bank","status":"publish","type":"post","link":"https:\/\/www.antiwar.com\/blog\/2026\/06\/13\/trumps-iran-war-slowing-global-economic-growth-to-lowest-level-since-pandemic-world-bank\/","title":{"rendered":"Trump\u2019s Iran War Slowing Global Economic Growth to Lowest Level Since Pandemic: World Bank"},"content":{"rendered":"<p>The World Bank on Thursday lowered its global growth forecast for the remainder of 2026 as the illegal US-Israeli war of choice on Iran drives up energy prices, inflation, and the cost of debt.<\/p>\n<p>\u201cThe global economy is facing another major shock,\u201d the World Bank\u2019s latest biannual <a class=\"rm-stats-tracked\" href=\"https:\/\/openknowledge.worldbank.org\/server\/api\/core\/bitstreams\/68364e3b-c999-43d2-9d29-1739bd613bd3\/content\" target=\"_blank\" rel=\"noopener\">Global Economic Prospects<\/a> report states. \u201cThe conflict in the Middle East has triggered sharp increases in energy prices, renewed inflationary pressures, and fueled expectations of tighter monetary policy.\u201d<\/p>\n<p>\u201cGlobal growth is projected to slow to 2.5% in 2026, from 2.9% in 2025 \u2013 the lowest rate since the Covid-19 pandemic \u2013 amid weaker prospects for economies dependent on energy imports and those directly affected by hostilities,\u201d the report continues. \u201cActivity is expected to firm in 2027-28 as energy supplies recover, monetary easing resumes, and trade strengthens.\u201d<\/p>\n<div class=\"embed-x\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">With global growth forecast at a post-pandemic low of 2.5%, the decisions governments make now will shape the trajectory for years to come. <br \/>\u27a1\ufe0f <a href=\"https:\/\/t.co\/eNNf5Opivg\">https:\/\/t.co\/eNNf5Opivg<\/a>  <a href=\"https:\/\/x.com\/hashtag\/GEP2026?src=hash&amp;ref_src=twsrc%5Etfw\">#GEP2026<\/a> <a href=\"https:\/\/t.co\/ZZIp9J0m8H\">pic.twitter.com\/ZZIp9J0m8H<\/a><\/p>\n<p>&mdash; World Bank Group (@WorldBankGroup) <a href=\"https:\/\/x.com\/WorldBankGroup\/status\/2065064031661007238?ref_src=twsrc%5Etfw\">June 11, 2026<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.x.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<p>The Iran War has resulted in the closure of the Strait of Hormuz, through which around 30% of the world\u2019s fertilizer and 20% of its <a class=\"rm-stats-tracked\" href=\"https:\/\/www.commondreams.org\/tag\/oil\">oil<\/a> previously passed. In addition to <a class=\"rm-stats-tracked\" href=\"https:\/\/www.commondreams.org\/news\/iran-war-food-crisis\" target=\"_self\">increasing the risk<\/a> of a global food crisis, the strait\u2019s closure has sent fuel and fertilizer prices soaring, with US farm diesel <a class=\"rm-stats-tracked\" href=\"https:\/\/www.commondreams.org\/news\/iran-war-fertilizer-prices\" target=\"_blank\" rel=\"noopener\">costing<\/a> nearly 50% more than it did on the war\u2019s eve in February and various fertilizer products <a class=\"rm-stats-tracked\" href=\"https:\/\/news.oilandgaswatch.org\/post\/iran-war-inflates-price-of-fossil-fuel-based-fertilizer-and-groceries?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">spiking<\/a> by between one-quarter and one-half.<\/p>\n<p>The war has affected the economies of countries far removed from Iran, as the World Bank reports forecasts that \u201cgrowth in emerging market and developing economies (EMDEs) is expected to slow to 3.6% this year.\u201d<\/p>\n<p>\u201cThe level of per capita income across EMDEs excluding China and India, relative to advanced economies, is not expected to return to the pre-pandemic level until after 2028, implying nearly a decade of lost income convergence,\u201d the international financial institution predicted.<\/p>\n<p>World Bank Group president Ajay Banga said in a <a class=\"rm-stats-tracked\" href=\"https:\/\/www.worldbank.org\/en\/news\/press-release\/2026\/06\/11\/global-economic-prospects-june-2026-press-release\" target=\"_blank\" rel=\"noopener\">statement<\/a> Thursday that \u201cdeveloping countries have faced a series of challenges over the last decade.\u201d<\/p>\n<p>\u201cThe impact differs by country, but the basic test is the same: Protect people and preserve stability today, without giving up on growth and jobs tomorrow,\u201d Banga added. \u201cIn response to the current shock, we are providing liquidity where it is needed now \u2013 and we are ready with additional financing, guarantees, and private-sector solutions if pressures deepen. Our job is to help countries steady the ship, keep reforms moving, and emerge stronger on the other side.\u201d<\/p>\n<p>The bank <a class=\"rm-stats-tracked\" href=\"https:\/\/www.reuters.com\/world\/world-bank-could-provide-up-100-billion-funds-countries-hit-by-war-banga-says-2026-04-14\/\" target=\"_blank\" rel=\"noopener\">said<\/a> in April that up to $100 billion would be made available over the next 15 months for nations suffering the most acute economic shocks caused by the war.<\/p>\n<p>As US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu allegedly undermine efforts to end the war, the World Bank cautions that the global economic outlook \u201cremains skewed to the downside.\u201d<\/p>\n<p>\u201cA renewed escalation of hostilities or more prolonged disruptions to commodity flows could further raise commodity prices, intensify inflationary pressures and food insecurity, trigger financial stress, and lower growth,\u201d the bank\u2019s report warns.<\/p>\n<p>In his <a class=\"rm-stats-tracked\" href=\"https:\/\/openknowledge.worldbank.org\/server\/api\/core\/bitstreams\/ea60f78b-15d2-4cd4-8ca9-667b4888b4d1\/content\" target=\"_blank\" rel=\"noopener\">foreword<\/a> to the new Global Economic Prospects report, World Bank Group chief economist Indermit Gill warned that \u201cbarring a miracle, the 2020s will prove to be what their ominous opening foreshadowed: a lost decade \u2013 not just for a couple of outliers, but for dozens of developing economies.\u2019\u201d<\/p>\n<p>\u201cAmid one of the densest clusters of global shocks since the 1970s, nearly 1 out of every 2 developing economies has failed since 2019 to advance on the most rudimentary promise of development: narrowing the income gap with the world\u2019s most prosperous economies,\u201d Gill added. \u201cFor light at the end of the tunnel, you\u2019d have to look to the 2030s.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The World Bank on Thursday lowered its global growth forecast for the remainder of 2026 as the illegal US-Israeli war of choice on Iran drives up energy prices, inflation, and the cost of debt. \u201cThe global economy is facing another major shock,\u201d the World Bank\u2019s latest biannual Global Economic Prospects report states. \u201cThe conflict in [&hellip;]<\/p>\n","protected":false},"author":372,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_social_image_id":59699,"_social_image_url":"","_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[3],"tags":[],"coauthors":[806],"class_list":["post-59696","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"meta_box":{"disable_donate_message":"0","custom_donate_message":"","_social_image_id":"59699","subtitle":"\u201cFor light at the end of the tunnel, you\u2019d have to look to the 2030s,\u201d says the World Bank\u2019s chief economist."},"_links":{"self":[{"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/posts\/59696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/users\/372"}],"replies":[{"embeddable":true,"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/comments?post=59696"}],"version-history":[{"count":2,"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/posts\/59696\/revisions"}],"predecessor-version":[{"id":59698,"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/posts\/59696\/revisions\/59698"}],"wp:attachment":[{"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/media?parent=59696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/categories?post=59696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/tags?post=59696"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.antiwar.com\/blog\/wp-json\/wp\/v2\/coauthors?post=59696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}