World Bank cuts the region's 2026 growth outlook to 1.8%
— · 20 weeks ago
In its economic update of 8 April 2026, titled "Challenges of Conflict and Industrial Policy for Development", the World Bank cut its growth forecast for the Middle East, North Africa, Afghanistan and Pakistan region.
Excluding Iran, regional growth is expected to slow from 4.0% in 2025 to 1.8% in 2026 — 2.4 percentage points below the Bank's January projections.
The report attributes the downgrade to disruption of energy supply routes and infrastructure, including the closure of the Strait of Hormuz and the destruction of energy and public infrastructure, and the financial volatility that followed. It also notes inflationary pressure from sustained energy prices feeding through production costs and food prices well beyond the direct conflict zone.
Source: World Bank — worldbank.org