IMF Warns Prolonged Middle East Conflict Could Weaken Global Growth Outlook

The International Monetary Fund raised its 2026 global growth forecast to 3.1% but warned that prolonged Middle East conflict, higher energy prices and shrinking policy buffers could weaken the recovery. Global growth is projected at 3.4% in 2027, unchanged from the IMF’s July outlook. Global headline inflation is projected at 4.7% in 2026, with risks becoming increasingly uneven across economies. Energy importers and lower-income countries face greater pressure if disruptions persist. Higher energy and food prices could renew inflation, while rising government borrowing costs further narrow room for policy support.

Source: TokenPost