- The announcement followed the release of the bank’s latest economic outlook
- Bank said tens of billions of dollars are already available through existing funding arrangements
The World Bank has signalled its readiness to significantly increase financial assistance to developing countries as the conflict in the Middle East continues to create uncertainty in the global economy.
Eko Hot Blog gathered that the international lender said it could provide as much as $100 billion in support over the next 15 months if economic conditions worsen, with the funds aimed at helping vulnerable nations manage rising costs, protect livelihoods, and maintain economic stability.
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The announcement followed the release of the bank’s latest economic outlook, which warned that the ongoing crisis could weaken global growth, drive up energy prices, and increase inflationary pressures across many economies.
According to the report, the global economy is expected to expand by 2.5 per cent in 2026, slower than the 2.9 per cent growth recorded in 2025.
The bank noted that economic prospects have deteriorated in many countries since the beginning of the year, reflecting the growing impact of geopolitical tensions and market uncertainty.
To support countries facing immediate challenges, the World Bank said tens of billions of dollars are already available through existing funding arrangements.
The resources are expected to help governments strengthen social welfare programmes, support businesses, and cushion the effects of higher living costs.
The institution revealed that several countries are already working with the World Bank to prepare rapid-response measures in case the economic consequences of the conflict deepen. It added that additional funding could be deployed if circumstances require broader intervention.
The report highlighted growing concerns in global energy markets, with disruptions to major shipping routes contributing to higher oil prices. Increased fuel costs, the bank warned, could place additional pressure on economies already struggling with inflation and slower growth.
Rising fertiliser prices are also expected to affect agricultural production and food costs, creating further challenges for households and governments, particularly in developing regions.
World Bank President, Ajay Banga, said countries must balance the need to protect citizens from immediate economic hardship while continuing to pursue long-term development goals. He stressed that the institution stands ready to provide financing, guarantees, and private-sector support where necessary.
The report warned that the outlook could worsen if energy supply disruptions intensify or if financial markets come under additional strain. Under such a scenario, global growth could slow more sharply while inflation rises further.
Developing economies are projected to experience weaker growth this year before gradually recovering in the years ahead. Economies in the Gulf region are expected to be among the most affected by the crisis, while countries in Sub-Saharan Africa may face increased inflation driven by higher food and agricultural input costs.
World Bank Deputy Chief Economist, Ayhan Kose, urged governments to use the current challenges as an opportunity to strengthen economic resilience through reforms, infrastructure investment, and policies that encourage private-sector expansion and job creation.
The report also drew attention to rising debt burdens across developing countries, warning that growing public debt levels are reducing governments’ ability to respond to crises and invest in essential sectors such as education, healthcare, and infrastructure.
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