IMF upgrades 2026 growth forecast but warns of 'split' outlook

In its World Economic Outlook (WEO) released at the organization's Annual Meetings in Bangkok, the IMF raised its 2026 global growth forecast by 0.1 percentage points to 3.1 percent, compared with 3.5 percent growth in 2025. Uneven outlook for growth © John SAEKI, Janis LATVELS / AFP It warned that while many advanced economies have been buoyed by rising investment in artificial intelligence (AI) technology, poorer countries that are not benefiting from that boom face stark choices as they deal with high energy prices caused by the Iran war. "The global economy has been resilient, but that resilience is under strain, with risks tilted to the downside," Silvana Tenreyro, the IMF's chief economist, told journalists in Bangkok.With global debt-to-GDP ratios at sky-high levels, including in advanced economies, the IMF has called on governments to cut spending and manage borrowing -- a difficult task for those in the developing world struggling with the Iran war shock."What we are advocating for is for policymakers to balance the near-term needs of inflation, and that involves food security, that involves energy security... while also keeping in mind the medium-term stability," said Den...