IMF Trims Its 2026 Global Growth Forecast to 3 Percent
The fund cited the war in the Middle East, higher energy prices and stalled progress on inflation, but expects a rebound to 3.4 percent in 2027.
The International Monetary Fund lowered its forecast for global economic growth this year to 3.0 percent from 3.1 percent in its July 8 World Economic Outlook update, citing the war in the Middle East, higher energy prices and geopolitical uncertainty, Reuters reports. It raised its 2027 forecast to 3.4 percent from 3.2 percent and its 2026 global inflation forecast to 4.7 percent.
The IMF said the world economy had so far weathered the shock from the war better than feared, but its forecast assumes the Strait of Hormuz begins reopening in mid-July; the update was prepared before the renewed U.S.-Iran fighting. It cut its forecast for the Middle East and Central Asia to 0.7 percent growth this year, and for the euro area to 0.9 percent.
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