IMF sees world economy growing just 3% this year amid Iran war

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The International Monetary Fund downgraded its global economic growth forecast to 3% for 2026, citing the energy shock triggered by the Iran war. However, the negative impact is somewhat balanced by strong investment in artificial intelligence and other technologies.

The International Monetary Fund on Wednesday modestly downgraded its outlook for the world economy this year, citing the energy shock caused by the Iran war. But the fallout from the conflict is being partially offset by booming investment in artificial intelligence and other technologies. The IMF now expects the global economy to expand by a sluggish 3 per cent in 2026, down from 3.5 per cent last year and from the 3.1 per cent it had forecast for this year back in April. The fund expects...