The IMF downgraded global growth prospects for the second time this year, saying it expects the global economy to grow by just 3 percent in 2026.
As Statista's Katharina Buchholz reports, in January, this projection had still stood at 3.3 percent. While the downgrade is slight, it still conveys the multiple risks to the global economy currently present. As shocks from the Iran war persist, driving up the price of energy and other traded goods, disinflation has stalled and financial markets continue to be at risk of negative reactions.
The IMF saw a positive aspect in the global AI boom, creating an increase in demand for related technologies.
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Two countries upgraded since the last forecast were China and the UK, the latter one on a very low level, however. Other countries where economic growth is paper-thin and decreasing are France, Germany and Japan. All three are expected to grow
