The International Monetary Fund (IMF) forecasts that the global economy grows by around 3% this year, marking a modest downgrade from its earlier outlook. In its latest assessment, the IMF cites an energy shock linked to the Iran war as a key factor weighing on economic activity. Multiple reports say the forecast is lower than previously expected and reflects weaker momentum compared with earlier projections. The IMF’s view is that the conflict’s impact is not uniform across the economy, with some effects tempered by technology investment. Several outlets report that strong investment in artificial intelligence and other advanced technologies is providing partial support, helping offset some of the drag from higher energy costs and uncertainty associated with the conflict. The reports also describe changes in the IMF’s projected growth rates compared with prior forecasts, including a reduction from an April estimate and reference to growth expectations for 2026. Overall, the IMF presents a picture of slower, subdued global growth, with near-term risks tied to the Iran war while technological investment contributes to resilience in parts of the economy.
IMF forecasts global growth of about 3% as Iran war energy shock is partly offset by AI
The International Monetary Fund (IMF) forecasts that the global economy grows by around 3% this year, marking a modest downgrade from its earlier outlook. In its latest assessment, the IMF cites an en...
- The IMF forecasts global economic growth of about 3% for the current year.
- The IMF attributes weaker growth partly to an energy shock linked to the Iran war.
- The IMF describes the Iran-war impact as being partly offset by strong investment in artificial intelligence and other technologies.
- The IMF’s forecast is lower than its earlier projection released in April, according to multiple reports.
- The reports reference broader global growth expectations that also shift for 2026 compared with earlier estimates.
The IMF downgraded its original 3.1% outlook for the year it announced in April to 3% this month, down even further from the 3.5% it expected in 2026.
2 hours agoThe International Monetary Fund on Wednesday modestly downgraded its outlook for the world economy this year, citing the energy shock caused by the Iran war. But the fallout from the conflict is being partially offset by booming investment in artificial intelligence and other technologies. The IMF now expects the global economy to expand by a sluggish 3 per cent in 2026, down from 3.5 per cent last year and from the 3.1 per cent it had forecast for this year back in April. The fund expects...
2 hours agoThe International Monetary Fund on Wednesday modestly downgraded its outlook for the world economy this year, citing the energy shock caused by the Iran war
4 hours ago
Reform UK branch apologises after posting AI-generated village cleanup photos
Reform UK has faced criticism after a local branch posts photos about a village cleanup that are later identified as AI-...
Apple releases iOS security updates early, citing AI-enabled faster hacking
Apple says it is moving up the release of some iOS security updates, rather than bundling them into its next scheduled m...
Leaked images show Samsung Galaxy Z Fold 8 and Z Flip 8 cases ahead of July Unpacked
Multiple outlets report new leaks related to Samsung’s upcoming foldables, expected to be unveiled at a Galaxy Unpacked...