Economic NewsEconomy-wide / Cross-sector

šŸ“ˆ IMF Forecast: Global Growth to Slow to 3.1% in 2026 Amid Inflation Risks

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• Global Growth: Projected to ease to 3.1% in 2026 before recovering to 3.4% in 2027. Resilience is currently supported by a technology sector upturn and strategic business adjustments. • Inflation Outlook: Global headline inflation is forecasted to rise to 4.7% in 2026, dropping to 4.1% in 2027 amid geopolitical disruptions. • Sector & Vulnerabilities: Energy-importing economies outside global technology & ICT supply chains face the weakest growth prospects. Downside risks include escalating conflicts, trade tensions, fiscal vulnerabilities, and shifted expectations around artificial intelligence. Upside potential relies on stronger AI investment and tech productivity. • Policy Recommendations: The IMF advises governments to implement targeted support for vulnerable groups, preserve price signals, and rebuild fiscal buffers through enhanced revenue measures.

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