World Bank warns of risks to global economy from Middle East war

The ceasefire regime in the Middle East will continue to impact the global economy, World Bank President Ajay Banga said, Report informs via Reuters.

According to him, under the baseline scenario assuming a swift end to hostilities, global economic growth could slow by 0.3–0.4 percentage points. If the conflict drags on, losses could reach up to 1 percentage point, according to World Bank estimates.

Banga also noted that inflationary pressure would increase in such a scenario. He estimates that prices could rise by 200–300 basis points, and if the war continues further, inflation could accelerate even more-by up to 0.9 percentage points.