The IMF said in Washington that the global economy has remained resilient despite the Middle East war and still expects world growth of about 3 percent in 2026. Julie Kozack said risks remain high because oil and gas prices are elevated, debt pressures are rising, and disinflation has stalled. She added that the economy is being pulled by both an energy supply shock and an AI-led technology boom. The IMF also said it will watch the effects of new U.S. sanctions on Iran.
The skyline of Los Angeles, California, on Aug. 24. Reuters-Yonhap
WASHINGTON — The IMF said on Thursday the global economy had weathered the energy shock caused by the war in the Middle East better than feared and global economic output was still expected to expand by about 3 percent in 2026, but it cautioned that risks remained high.
Julie Kozack, spokesperson for the International Monetary Fund, said oil and gas prices remained elevated and the energy shock from the war was not over. Global debt pressures were also mounting and the disinflation process over the 2022 cost of living crisis had stalled.
Global inflationary expectations have risen but remain well-anchored over the longer run, Kozack told a regular IMF briefing.
