The International Monetary Fund has slightly raised its forecast for global economic growth in 2026. The organisation now expects the world economy to expand by 3.1%, compared with its earlier forecast of 3%. Strong investment in artificial intelligence has helped support growth, even as conflict in the Middle East pushes up energy costs and creates new problems for businesses.
The IMF expects growth to reach 3.4% in 2027 if current assumptions about energy supplies and shipping conditions hold. However, the organisation warned that a longer conflict could damage this outlook. Higher oil prices may increase transport costs, raise consumer prices and make it harder for governments to control inflation. Countries that depend heavily on imported energy could face especially difficult conditions if supplies remain limited.
Artificial intelligence has become an important source of investment, with companies spending heavily on data centres, computing equipment and advanced chips. These projects support suppliers and create business opportunities in several countries. Yet the gains are uneven, and some economies have benefited far more than others. The IMF also warned that high public debt and rising borrowing costs could weaken financial stability. Governments may need stronger long-term plans to control debt, protect essential services and prepare for future economic shocks.
