IMF Forecasts Slower Global Growth and Increased Inflation for 2026

The IMF's October 2026 World Economic Outlook, titled 'Resilience Under Strain, Urgent Choices,' projects global economic growth to slow to 3.1% in 2026 before rising to 3.4% in 2027. Global headline inflation is expected to increase significantly to 4.7% in 2026, then ease to 4.1% in 2027. The report highlights ongoing downside risks, including potential conflict escalations, AI reassessments, trade tensions, and fiscal vulnerabilities, which could impact future economic stability.