Finance Minister Roland Lescure said on Tuesday
Lescure made the remarks as he arrived for the second and final day of a G7 finance ministers’ meeting in Paris, where officials from the world’s leading industrialized economies have been discussing global growth risks, debt pressures and development financing.

The French minister said participants broadly agreed that multilateral financial institutions needed to play a stronger role in assisting countries struggling with economic fragility and external shocks.

A joint communiqué outlining the outcomes of the meeting is expected later on Tuesday.

The discussions come as developing economies continue facing pressure from high borrowing costs, slowing global trade, climate-related disruptions and the lingering effects of recent geopolitical conflicts on food and energy markets.

International financial institutions, including the IMF and World Bank, have faced increasing calls from advanced economies and developing nations to accelerate lending reforms, expand crisis financing and improve debt restructuring mechanisms for low-income countries.

G7 officials have also been under pressure to demonstrate coordinated support for vulnerable economies amid concerns that widening debt burdens and fiscal instability could undermine global economic recovery.

In an interview, Banga said the World Bank expects global growth to decline by 0.3 to 0.4 percentage points under a baseline scenario assuming an early end to the conflict, and by as much as 1 percentage point if the war continues.

Inflation could rise by 200 to 300 basis points, with further increases of up to 0.9 percentage point in a prolonged conflict scenario.The bank now projects growth in emerging markets and developing economies at 3.65 percent in 2026, down from a previous estimate of 4 percent in October.

In a more severe scenario, growth could fall to as low as 2.6 percent. Inflation in these economies is forecast to reach 4.9 percent, compared to an earlier estimate of 3 percent, and could climb as high as 6.7 percent if disruptions persist.

The conflict has already driven oil prices up by about 50 percent while disrupting supplies of key commodities including oil, natural gas, fertilizers and helium, alongside impacts on tourism and air travel. Continued instability around the Strait of Hormuz remains a major risk factor, given its role in global energy flows.

Banga said the economic outlook depends heavily on whether ongoing negotiations lead to a lasting peace and the reopening of critical trade routes. Failure to stabilize the situation could result in longer-term damage to energy infrastructure and sustained pressure on global markets.

The World Bank has begun discussions with vulnerable countries, including small island states with limited energy resources, on accessing emergency funding through its crisis response mechanisms. These facilities allow governments to draw on pre-approved funds to manage immediate shocks without requiring new approvals.

At the same time, Banga cautioned governments against introducing unsustainable energy subsidies, warning such measures could worsen fiscal pressures in countries already burdened by high debt and elevated borrowing costs.

The crisis has intensified calls for energy diversification and greater self-sufficiency. Banga pointed to increased investments in refining capacity in countries such as Nigeria as an example of improving energy resilience, while noting ongoing World Bank support for expanding energy production in nations including Mozambique.

He added that scaling up nuclear, hydroelectric, geothermal, wind and solar energy would be critical to reducing reliance on traditional fuels and mitigating future shocks to global energy systems.