IMF lowers its forecast for global economic growth to 3% during 2026
The International Monetary Fund (IMF) has lowered its global economic growth forecast to 3% for 2026, down from its April estimate of 3.1%. However, the IMF raised its forecast for next year from 3.2% to 3.4%.The Fund also lowered its 2026 growth forecast for the Middle East and Central Asia to 0.7%, compared to 1.9% in April, and raised its 2027 forecast to 6.5%, up from 4.6%.The IMF raised its growth forecast for the UK economy, while leaving its forecasts for the other G7 economies unchanged or lowering them, amid hopes that the economic impact of a potential war with Iran would be less severe than feared.In its July update to the World Economic Outlook report, which was completed before the latest wave of military action in the Middle East, the Washington-based fund predicted that the UK's gross domestic product would grow by 1% this year, an increase of 0.2 percentage points compared to its April forecast.
