IMF expects world economy to grow a sluggish 3% this year, weighed down by Iran war but helped by AI
The fund said AI demand partly offset war-related energy shocks as it warned global inflation will rise to 4.7% this year.
- The International Monetary Fund downgraded its global economic outlook on Wednesday, citing ongoing risks from the Middle East war, trade fragmentation, and potential AI market corrections.
- Iran's February 28 closure of the Strait of Hormuz—through which a fifth of global crude oil passes—triggered energy price surges that continue squeezing businesses and consumers worldwide.
- The IMF expects global consumer prices to increase 4.7% in 2026 as oil prices rise nearly 32% this year, meaning two years of inflation progress has stalled.
- Deniz Igan, chief of the IMF Research Department's World Economic Studies division, said the global economy is proving more resilient than expected despite the war, with tech sector demand offsetting energy supply losses.
- Global growth is projected to rebound to 3.4% in 2027, though this remains below the 3.5% average seen in 2024 and 2025, as the Strait of Hormuz is expected to reach prewar conditions by March 2027.
135 Articles
135 Articles
IMF cuts 2026 global growth forecast, sees Latin America holding steady at 2.4%
The International Monetary Fund has cut its forecast for global economic growth in 2026 to 3%, citing the fallout from the war in the Middle East, while projecting that Latin America and the Caribbean would grow 2.4% this year and 2.7% in 2027.
However, the organization's forecast has scaled back its expectations for global economic growth this year.
Dnevni list Danas
n1info.rsThe International Monetary Fund (IMF) has lowered its forecast for the growth of the world economy for this year because of the war in Iran, while the consequences of that conflict and the energy crisis are partially mitigated by the development of artificial intelligence (AI) and other technologies.
IMF lowers 2026 global growth forecast to 3%
The International Monetary Fund has inched its 2026 global growth forecast lower again to a sluggish 3%, warning of ongoing risks linked to the war in the Middle East, trade fragmentation and potential corrections in market expectations for AI.
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