IMF Cuts 2026 Global Growth Forecast to 3.1% Amid Middle East War Shadow

The IMF downgraded its 2026 global growth forecast to 3.1% from 3.4% in 2025 due to Middle East geopolitical tensions and energy shocks. Headline inflation is projected to rise to 4.4% in 2026 before falling to 3.7% in 2027. S&P Global forecasts a more pessimistic 2.4% growth, the weakest since 2009 excluding 2020.