World Bank Cuts Sub-Saharan Africa Growth Forecast for 2026

The World Bank has lowered its growth forecast for sub-Saharan Africa for the year 2026 by 0.3%, now estimating a growth rate of 4.1%, unchanged from 2025. This adjustment follows a two-week ceasefire agreement involving the United States and Iran, which has intensified external pressures on the region's economy.

The World Bank's Africa Economic Update, previously titled Africa's Pulse, highlights that the combination of rising fuel and fertilizer costs, along with a heavy debt burden, is weighing on economic activity. The lender noted that the region's economic growth is shaped by structural vulnerabilities and limited capacity for governments and the private sector to respond effectively to external shocks.

Despite the ongoing Iran war and rising global energy prices, the World Bank has maintained Nigeria's growth estimate for 2026 at 4.4%, as stated in its June 2025 Global Economic Prospect report.