IMF trims 2026 growth to 3% expects 2027 AI boost
Business
The International Monetary Fund just trimmed its 2026 global growth forecast to 3%, blaming the ongoing West Asia conflict for the slowdown.
On the bright side, they are a bit more optimistic about 2027, expecting growth to bounce back to 3.4%, partly thanks to artificial intelligence giving economies an extra push despite all the geopolitical drama.
Global inflation forecast 4.7% in 2026
Inflation is set to climb, too, with global rates now expected at 4.7% in 2026 as tensions keep driving up oil and food prices.
Some countries leading in AI exports, like Taiwan, South Korea, Thailand, and Malaysia, are weathering things better, while energy importers are feeling the pinch from pricier commodities.