IMF forecasts 3% global growth in 2026

The International Monetary Fund announced that the global economy has managed to better-than-expected withstand the energy shock resulting from the war in the Middle East, with projections still indicating an approximate 3% growth in global GDP in 2026. However, the Fund warned of rising risks, highlighting continued increases in oil and gas prices, growing global debt pressures, and the pause in inflation reduction efforts following the 2022 cost of living crisis. It explained that opposing forces are influencing the markets, as supply shocks push up energy and commodity prices, while the technology cycle driven by artificial intelligence helps support demand. Additionally, pressures on public debt are mounting, especially in advanced economies, amid declining aid and liquidity challenges in developing countries. While global growth persists, uncertainty remains high, with some countries preparing to rebuild their energy reserves as winter approaches in the Northern Hemisphere.

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