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The International Monetary Fund has lowered its forecast for global economic growth in 2026 to 3%, down from 3.1% in April's estimates, with growth being affected by tensions in the Middle East impacting energy and trade, despite the support from the surge in artificial intelligence and technological supply chains. The Fund anticipates a recovery in growth to 3.4% in 2027, but this remains below the average associated with the years 2024 and 2025. Inflation is also expected to rise to 4.7% in 2026 due to higher energy and food prices. The most affected region is projected to be the Middle East and Central Asia, with a sharp contraction expected in 2026 before a strong rebound in 2027. Meanwhile, larger economies such as the United States, China, and India are expected to maintain their projected growth rates.
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