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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