New Delhi, June 13 -- The World Bank has lowered its global growth forecast for 2026 to 2.5 per cent, warning that the conflict in the Middle East has triggered a fresh shock to the global economy by disrupting energy markets, fuelling inflation and weakening growth prospects across much of the world.

In its latest 'Global Economic Prospects' report released in June 2026, the World Bank said, "The global economy is facing another major shock. The conflict in the Middle East has triggered sharp increases in energy prices, renewed inflationary pressures, and fueled expectations of tighter monetary policy."

The multilateral lender projected global growth to slow from 2.9 per cent in 2025 to 2.5 per cent in 2026, calling it "the lowest rate...