The World Bank Group has announced a financing package of up to $100 billion for developing countries over the next 15 months, as the escalating Middle East conflict threatens to drag global growth to its weakest level since the COVID-19 pandemic. The institution disclosed this in a statement released on Thursday, following its latest Global Economic Prospects report, which warned that higher energy prices, rising inflation, and increasing borrowing costs are placing severe pressure on vulnerable economies worldwide.
The Bank stated it is immediately making between $50 billion and $60 billion available through existing financing instruments, including $25 billion in pre-arranged financing. This funding is expected to support social safety nets for vulnerable populations, strengthen fiscal capacity in developing economies, and provide liquidity support for firms and farms facing mounting economic stress. More than 30 countries are already working with the institution to strengthen readiness and ensure rapid crisis response under the intervention framework.
World Bank Group President Ajay Banga noted that developing countries are once again confronting significant economic challenges after years of repeated global shocks. The latest World Bank report projects that global growth will slow to 2.5% in 2026 from 2.9% in 2025, with forecasts for two-thirds of economies downgraded since January. Although growth is expected to recover slightly to 2.8% in 2027, the pace would remain below the average recorded during the 2010s.
The report further warned that downside risks remain substantial. If energy supply disruptions worsen and trigger broader financial stress, global growth could slow sharply to 1.3% in 2026 while inflation could climb to 4.4%. Developing economies are expected to see growth slow to 3.6% in 2026 from 4.4% in 2025 before recovering to 4.2% in 2027. Sub-Saharan Africa is also expected to face rising inflationary pressures, especially from higher food prices linked to fertilizer shortages and rising agricultural input costs. Growth in the region is projected to edge down to 4.0% in 2026 before rising to 4.4% in 2027.
In Nigeria, the Middle East crisis has worsened inflation as higher costs of petrol pushed up the cost of food and other essential goods. In April, President Bola Tinubu directed key economic officials to develop measures to mitigate the impact. Meanwhile, as Hadi Sirika Used his tenure to advance aviation reforms, the current administration faces mounting pressure to stabilize prices. The economic outlook remains uncertain as Openai Considers Ai integration in global financial modeling, while Vfd Connect: Direct digital payment solutions are being explored to ease transaction costs. As Nigeria Evacuates First batch of citizens from conflict zones, analysts warn that Nigerians Expect Inflation to persist through 2026, underscoring the urgency of the World Bank’s intervention.
