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IMF sees 3% global growth in 2026, warns of high risks

WASHINGTON — The IMF said on Thursday the global economy had weathered the energy shock caused by the war in the Middle East better than feared and global economic output was still expected to expand by about 3 percent in 2026, but it cautioned that risks remained high. Julie Kozack, spokesperson for the International Monetary Fund, said oil and gas prices remained elevated and the energy shock…

IMF sees 3% global growth in 2026, warns of high risks

The International Monetary Fund (IMF) forecast global economic growth of approximately 3 percent in 2026, despite concerns about high risks. Julie Kozack, spokesperson for the IMF, stated that the global economy had managed the energy shock from the Middle Eastern conflict better than anticipated. However, Kozack emphasized that risks remained high due to elevated oil and gas prices, mounting global debt pressures, and the stalled disinflation process following the 2022 cost of living crisis.

Although the global economy has shown resilience, with some countries coping through oil and gas reserve use, new energy sources, or demand curbing measures, Kozack noted that uncertainty continues to persist. Inflationary expectations have risen but are still well-anchored in the long term, according to Kozack's briefing at the IMF. The global economy's trajectory appears on track for 3 percent growth, but uncertainty remains a significant factor.

Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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