Global economy to slow less than expected in 2026 as AI boom offsets war hit: IMF

BANGKOK — The International Monetary Fund has raised its forecast for global economic growth this year as the AI-driven investment boom helps offset some of the impact from surging energy costs The IMF expects the global economy to grow at 3.1% in 2026, up from the 3% projected in July , but slower than the 3.5% last year. For 2027, it kept the forecast unchanged at 3.4%. The UN agency expects inflation at 4.1% in 2027, above the 3.9% it projected in July – when it estimated the Strait of Hormuz would reopen by mid-July, with conditions broadly returning to pre-war levels by March 2027. For the current year, it maintained its 4.7% outlook.