Photo taken on July 8, 2026 shows the International Monetary Fund (IMF) Headquarters in Washington, DC, the United States. [Photo/Xinhua]
NEW YORK - The International Monetary Fund on Wednesday projected that global growth will slow to 3.0 percent in 2026 before recovering to 3.4 percent in 2027.
This is down from the average of 3.5 percent of growth in 2025, and is also slightly down from the 3.1 percent projection in the April 2026 World Economic Outlook report. The modest slowdown reflects the effects of the war in the Middle East, which are partly offset by accelerated demand-driven momentum in the global technology cycle, driven by advances in artificial intelligence and its adoption, the July report said.
Based on the projections of higher energy prices, less supportive monetary policy and elevated policy and geopolitical uncertainty through 2027, global headline inflation is expected to increase from 4.1 percent in 2025 to 4.7 percent in 2026 before declining to 3.9 percent in 2027, slightly upward from the April projection, the IMF said.
World trade volume growth is projected to slow sharply from 5.0 percent in 2025 to 3.5 percent in 2026 before recovering to 4.3 percent in 2027, it added.
