IMF say global growth on track to reach 3% in 2026, but risks remain high
The fund said high oil and gas prices, nearly 100% global public debt and weaker liquidity in developing countries keep downside risks elevated.
- On Thursday, the International Monetary Fund reported the global economy has weathered the Middle East energy shock better than feared, projecting about 3% growth for 2026.
- Spokesperson Julie Kozack noted the global economy faces conflicting pressures: a negative energy supply shock driving commodity prices sharply higher, while AI-led technology provides offsetting demand.
- Global public debt is nearing 100 percent of GDP, the highest level since World War Two, while liquidity problems are building in developing countries including Africa.
- While inflation expectations have risen, they remain anchored over the longer run, prompting the IMF to urge central bankers to maintain price stability mandates.
- As winter approaches in the Northern Hemisphere, energy demands are set to rise while many countries need to restock reserves, leaving risks high despite current resilience.
21 Articles
21 Articles
Today, Thursday, the International Monetary Fund (IMF) projected world economic output growth of about 3 per cent during the current year, noting that the world economy had surpassed the energy shock of the Middle East war better than expected, but cautioned against continuing inflation risks and increasing debt levels.
The global economy has withstood the energy shock caused by the war in the Middle East, says the IMF The post IMF: Global growth on track to 3%, but risks remain high. appeared first on in.gr.
The world economy is influenced by opposing forces. While AI is driving the economy, the negative supply shock in energy inhibits growth.
The International Monetary Fund (IMF) said on Thursday that the global economy resisted the energy shock caused by the war in the Middle East better than expected and that global economic production should still grow by about 3% by 2026. The agency warned, however, that the risks remain high. Read also: FT: IMF ruled out the main candidate for chief economist for criticism of Trump Iran's tariffs rejects retreat and says it is ready to expand wa…
The Monetary Fund said that the world economy was growing 3% in 2026 despite the energy shock, warning against rising oil and gas prices and approaching the world public debt from 100% of output.
The world economy has been more resilient to energy shocks due to the conflict in the Middle East than IMF expected, but the Fund warns: risks remain high.
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