IMF: AI and fiscal support keep 2026 growth at 3%
Business
Despite the ongoing Iran war, the global economy is holding up better than expected, says the IMF.
Thanks to big investments in AI and fiscal support and infrastructure investment, growth for 2026 is still on track at 3%, just a tiny dip from earlier predictions.
Energy up 25% Asia hit hardest
Energy prices are still high, up 25% since before the war, with Asian countries feeling it most at the gas pump.
But strong exports from AI tech hubs like Taiwan and Korea are helping balance things out.
The shift to renewables and smart government spending has also cushioned some of the blows from inflation and rising costs.
Still, with geopolitical tensions simmering (like that recent ship attack in Hormuz), risks haven't gone away.