The International Monetary Fund has lowered its forecast for global economic growth in 2026 to 3%, pointing to higher energy costs, weaker international trade and continued geopolitical uncertainty. The world economy has performed better than some analysts expected during the Middle East conflict, but the IMF warns that inflation could remain elevated and that a new escalation could disrupt shipping, investment and consumer spending. Developing economies may face the greatest pressure because many depend heavily on imported fuel, food and fertiliser. The fund expects global growth to improve in 2027, but says the outlook remains unusually uncertain.
