Key facts
- The World Bank projects global growth to slow to 2.5% in 2026.
- This projected growth rate is the weakest since the COVID-19 pandemic.
- Higher energy prices and Middle East conflict uncertainty are cited as reasons for the downgrade.
- Forecasts for two-thirds of economies have been downgraded by the World Bank.
- German investor morale rose to 10.5 points in June.
- German investor morale was -10.2 points in May.
- The rise in German investor morale is linked to hopes of an end to the Iran conflict.
- New Zealand economists have reduced inflation forecasts.
- Fuel prices and airfares declined in New Zealand in May.
- The New Zealand price decreases occurred before potential Middle East peace impacts.
The World Bank has revised its global growth forecast downwards, projecting a slowdown to 2.5% in 2026. This marks the weakest economic performance anticipated since the COVID-19 pandemic. The primary drivers for this downgrade are the sustained higher energy prices and the increased uncertainty arising from the ongoing conflict in the Middle East. Consequently, forecasts for two-thirds of the world's economies have been downgraded.