The World Bank has lowered its global growth forecast to 2.5 percent. The world economy is weakening as surging energy prices fuel a new bout of inflation and increase borrowing costs.
The economic decline is driven by the fallout from the Iran war, which has disrupted commodity flows and raised the cost of imports. Higher energy prices and increased uncertainty are expected to drag down global growth throughout the year.
Two-thirds of economies have seen their prospects deteriorate. The World Bank warns that a prolonged conflict could tip dozens of developing nations into years of stagnation.