IMF Downgrades 2026 Global Growth Forecast to 3% Citing Iran War and Energy Shock

The International Monetary Fund (IMF) has modestly downgraded its outlook for the world economy, projecting a sluggish 3% growth for 2026. This reduction from an earlier 3.1% forecast is primarily attributed to the energy shock caused by the Iran war, which has stalled disinflation progress and is expected to increase global consumer prices by 4.7% this year. The negative impact is partially offset by booming investment in artificial intelligence and other technologies.