World Bank President Ajay Banga outlines a critical shift in the global economic outlook. After years of surprising resilience, the world economy—once expected to grow at nearly 3%—is now facing a slowdown due to rising geopolitical tensions and energy disruptions. Banga explains that global growth could fall by 0.2–0.3%, with emerging markets experiencing even sharper declines. At the same time, inflation, initially projected at around 3%, could rise by an additional 200–300 basis points in the baseline scenario, and potentially much higher if conflict escalates. He emphasizes the need for targeted, temporary policy responses rather than broad spending that could worsen fiscal stress. Vulnerable economies, especially energy-dependent island nations, face the greatest risks due to limited resources and supply access.