World Bank flags economic risks from Middle East war

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.