World Bank Adjusts Economic Growth Forecasts for Select Countries

The World Bank has issued several economic growth forecasts for different countries. India's FY27 growth forecast was raised to 6.6%, while Nepal's economic growth is expected to slow to 2.3%. The World Bank has also projected slower growth for the Middle East, Southeast Asia, and Ukraine. Turkish economy is expected to grow at 2.8% in 2026.

The World Bank has issued a wide-ranging set of economic growth forecasts tied to its April 2026 South Asia Economic Update. India's FY27 growth forecast was raised to 6.6%, though higher energy prices from the ongoing Middle East conflict and supply chain disruptions are expected to weigh on the region's overall trajectory. South Asia as a whole is projected to slow to 6.3% growth in 2026, down from 7% in 2025, before recovering to 6.9% in 2027.

Nepal faces a sharper deceleration, with growth projected to slow to 2.3% in FY26 from 4.6% in FY25. The World Bank cited the Middle East conflict, lingering effects of September 2025 domestic unrest, and reduced remittance flows as key drags. Middle East economies are themselves forecast to slow to 1.8% growth in 2026, while Ukraine and Moldova face further downward revisions.

Turkey is projected to grow at 2.8% in 2026, with Southeast Asian economies also expected to moderate according to the World Bank. The forecasts underscore how the Middle East conflict is creating cascading effects across developing markets — through energy prices, remittances, and trade channels — that investors in emerging market ETFs and frontier funds should monitor closely.