First reported by Business Recorder
IMF cuts 2026 world growth forecast, flags risks from new Mideast fighting
IMF cuts 2026 global growth forecast to 3% citing Iran war energy shock, partially offset by AI demand
The International Monetary Fund (IMF) has downgraded its 2026 global growth forecast to 3%, down from 3.1%, citing the lingering energy shock from the US-Israel war on Iran. The slowdown is partially offset by AI-driven demand. Growth is expected to rebound to 3.4% in 2027. The report highlights the economic fallout from geopolitical conflict and the moderating role of technology investment.
Key quotes
The global economy is expected to grow 3 percent in 2026, down from April's forecast of 3.1 percent, a 'modest slowdown' partly offset by AI-driven demand
Growth is forecast to rebound to 3.4 percent in 2027, just below the 2024-25 growth average of 3.5 percent
The International Monetary Fund (IMF) has cut its 2026 global growth forecast for the second time this year, citing the 'lingering effects' of the energy shock caused by the US-Israel war on Iran
From the article
Global economy to grow 3 percent in 2026, as AI demand partly offsets energy shock from Iran war, IMF says.
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