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France 24
France 24
Business
FRANCE 24

IMF upgrades 2026 global growth forecast but war and debt threaten outlook

Cover image: The Iran war has seen global energy prices skyrocket as Tehran's retaliatory action has targeted Washington's allies, putting a strain on the global economy. © AFP

The IMF has raised its 2026 global growth forecast slightly to 3.1%, citing the resilience of advanced economies despite rising energy prices caused by the Iran war. But it warned that poorer countries that are not benefiting from the AI boom remain particularly vulnerable to energy shocks, economic uncertainty and mounting debt.

The International Monetary Fund on Tuesday forecast global growth in 2026 would slow less than previously expected because of advanced economies' "resilience" in the face of war-fuelled energy prices, but warned low-income countries remained vulnerable to the supply shock.

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