<\/p>
The economic aftershocks of the Iran war are beginning to take shape, and the warning from Ajay Banga suggests the damage could linger long after the guns fall silent.\u00a0<\/p>
In an assessment of the conflict\u2019s global impact, the World Bank chief said even an immediate and lasting ceasefire would not prevent a \u201ccascading\u201d slowdown across economies. If the truce holds, global growth could still fall by 0.3 to 0.4 percentage points. If it collapses, the hit could deepen to as much as 1 percentage point \u2014 an outcome that would ripple across trade, energy markets, and financial systems.\u00a0<\/p>
Inflation pressures are expected to intensify in parallel. Banga indicated global inflation could rise by 200 to 300 basis points in a ceasefire scenario, with further escalation \u2014 up to 0.9 percentage points \u2014 if the conflict drags on. For developing economies, the situation looks more severe, with inflation potentially reaching 6.7% in a worst-case scenario.\u00a0<\/p>
Developing world in the firing line\u00a0<\/strong><\/p> The World Bank has already begun discussions with vulnerable nations, including energy-import-dependent island economies, to activate emergency funding through crisis response windows. However, Banga issued a clear warning: governments must avoid locking themselves into unsustainable energy subsidies that could trigger fiscal instability later.\u00a0<\/p> Instead, the crisis is reinforcing a structural lesson \u2014 countries that fail to diversify energy sources risk prolonged economic vulnerability. Banga pointed to Nigeria as a case study, where a $20 billion refinery push has strengthened domestic energy security and even enabled exports like jet fuel to neighboring countries.\u00a0<\/p> Banga underscored that the long-term solution lies in scaling alternative energy \u2014 nuclear, hydro, geothermal, alongside wind and solar. Without this shift, countries may fall back on traditional fossil fuels, prolonging both economic and environmental risks.<\/p> <\/div> Iran war impact, global economy slowdown, World Bank warning, Ajay Banga analysis, global inflation surge, oil price shock, economic fallout, developing countries crisis, energy security risks, global growth forecast#Worst #World #Bank #warns #lasting #economic #damage #Iran #war1775917350<\/p> ","protected":false},"excerpt":{"rendered":" The economic aftershocks of the Iran war are beginning to take shape, and the warning from Ajay Banga suggests the damage could linger long after the guns fall silent.\u00a0 In an assessment of the conflict\u2019s global impact, the World Bank chief said even an immediate and lasting ceasefire would not prevent a \u201ccascading\u201d slowdown across […]<\/p>\n","protected":false},"author":1,"featured_media":6296,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[23513,1525,19096,23517,2554,23516,23518,23511,23519,23514,968,14320,6837,23515,1975,326,2557,23512,23520],"class_list":["post-6295","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-content-marketing","tag-ajay-banga-analysis","tag-bank","tag-damage","tag-developing-countries-crisis","tag-economic","tag-economic-fallout","tag-energy-security-risks","tag-global-economy-slowdown","tag-global-growth-forecast","tag-global-inflation-surge","tag-iran","tag-iran-war-impact","tag-lasting","tag-oil-price-shock","tag-war","tag-warns","tag-world","tag-world-bank-warning","tag-worst"],"acf":[],"_links":{"self":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/6295","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6295"}],"version-history":[{"count":0,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/posts\/6295\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=\/wp\/v2\/media\/6296"}],"wp:attachment":[{"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6295"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6295"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/longzhuplatform.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6295"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}