The World Bank has said it could scale up financial support to as much as $100bn over the next 15 months to help developing countries cope with the economic fallout from the escalating crisis in the Middle East.
The commitment comes as the lender warned that the conflict could push global economic growth to its weakest level since the COVID-19 pandemic, driven by surging energy prices, rising inflation, and tighter borrowing conditions.
In its latest Global Economic Prospects report released on Thursday, the World Bank projected that global growth would slow to 2.5 per cent in 2026 from 2.9 per cent in 2025, with forecasts for about two-thirds of the world’s economies revised downward since January. Growth is expected to recover modestly to 2.8 per cent in 2027 but remain below the average recorded during the 2010s.
The World Bank said it was immediately making between $50bn and $60bn available through existing financing instruments, including $25bn in pre-arranged funding. The resources are expected to support social safety nets, strengthen government finances, and provide liquidity for businesses and farms affected by the crisis.
“To date, over 30 countries are actively working with the World Bank Group to enhance readiness and enable a rapid response to the crisis under this response plan. If the conflict and its economic fallout persist, the World Bank Group can scale up its support to $80–100bn over 15 months,” the lender stated.
