IMF Projects Global Growth Slowdown to 3.0% in 2026, Citing Middle East War and Rising Inflation

The International Monetary Fund (IMF) released its July 2026 World Economic Outlook Update, projecting global economic growth to slow to 3.0% in 2026 and 3.4% in 2027. This modest slowdown is attributed to the ongoing conflict in the Middle East, partially offset by momentum in the global technology cycle driven by artificial intelligence. Global headline inflation is expected to increase from 4.1% in 2025 to 4.7% in 2026, indicating a stall in the disinflation trend.