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IMF cuts global growth forecast for 2026 amid renewed tensions

IMF cuts global growth forecast for 2026 amid renewed tensions

The International Monetary Fund has downgraded its global growth forecast for 2026 to 3.0%, warning of ongoing risks including the war in the Middle East, trade fragmentation, and the potential impact of the artificial intelligence market. It noted that the global economy has avoided a sharp downturn thanks to strong demand in the technology sector, despite a 25% increase in energy prices and regional policies aimed at rebuilding petroleum reserves, which could lead to a significant rise in prices. Growth expectations for 2027 are projected to reach 3.4%, with inflation rising to 4.7% in 2026.

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