World Bank warns of global growth contraction to 1.3% in 2026 amid potential Iran conflict

The World Bank projects a significant global economic slowdown to 1.3% growth by 2026, citing a potential prolonged conflict involving Iran as a primary catalyst. This forecast highlights systemic risks including elevated interest rates, food insecurity, and a potential systemic debt crisis for vulnerable nations. The assessment indicates current geopolitical tensions between the US and Iran are approaching the institution's worst-case scenario for global economic stability.