Global economy to slow less than expected in 2026 as AI boom offsets war hit: IMF

A motorcycle rides past a banner ahead of the annual meetings of the International Monetary Fund (IMF) and the World Bank Group at the Queen Sirikit National Convention Center in Bangkok, Thailand, on October 10, 2026.Nurphoto | Getty ImagesBANGKOK — The International Monetary Fund has raised its forecast for global economic growth this year as the AI-driven investment boom helps offset some of the impact from surging energy costs. The IMF expects the global economy to grow at 3.1% in 2026, up from the 3% projected in July, but slower than the 3.5% rate last year. For 2027, it kept the forecast unchanged at 3.4%.The UN agency expects inflation at 4.1% in 2027, above the 3.9% it projected in July – when it estimated the Strait of Hormuz would reopen by mid-July, with conditions broadly returning to pre-war levels by March 2027. For the current year, it maintained its 4.7% outlook. The IMF now estimates that the Strait of Hormuz will reopen in March next year and return to pre-war state by October. Gulf crude exports averaged 88% of pre-conflict levels in September as traffic picked up, the international body said. The report was released at the IMF and World Bank annual meetings in ...