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IMF forecasts 3.1% world growth in 2026 but flags mounting risks

Reported by Vivek Joshi (Copy Editor) · Economic Times - Markets ·

Verified — Confirmed by a second source: Business Standard - Top Stories

Confirmed by a second source: Business Standard - Top Stories

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IMF forecasts 3.1% world growth in 2026 but flags mounting risksPhoto: Wikimedia Commons

The International Monetary Fund said global GDP will grow 3.1% in 2026. The boost comes largely from spending on artificial‑intelligence infrastructure. The Fund warned that a drawn‑out conflict in the Middle East could curb that growth. It also flagged high energy prices as a pressure point for many economies. Rising sovereign and corporate debt adds further strain to the outlook. Uneven growth across regions means some countries may lag while others expand faster. These risks together could test the resilience of the world economy.

Context

The IMF regularly updates its global forecasts and points out major risks for policymakers. AI‑related spending has risen sharply worldwide, supporting productivity. Conflicts in the Middle East have historically pushed oil and energy prices higher, affecting economies that rely on imports.

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