The IMF on Wednesday cut its 2026 growth projection for the world economy again, saying an AI boom has not fully offset the fallout from war in the Middle East.
Global economic growth is now estimated at 3.0 percent this year, the International Monetary Fund said, down from 3.1 percent in its April forecast. The estimate was made before fresh exchanges of fire between the United States and Iran in recent hours.
It is the second time this year that the fund has lowered its overall growth expectations. The latest estimate marks a cooling from the 2025 growth rate as well.
Global inflation meanwhile is anticipated to accelerate to 4.7 percent this year, a higher level than earlier projected.
Still, the overall growth slowdown is modest, as momentum in artificial intelligence — driven by demand — partially offsets the effects of the war.
