Global growth is projected to slow moderately to 3.0%, as the world economy navigates war-related shocks and rapid advances in AI.
Speaking at a press briefing about the latest World Economic Outlook Update, Petya Koeva Brooks, Deputy Director of Research at the International Monetary Fund (IMF) said global growth is projected at 3.0 percent for 2026 and 3.4 percent for 2027.
She also said the outlook is uneven, due to the war shock on energy importers and vulnerable economies, while AI-driven demand is lifting countries integrated into the global technology value chain.
Global disinflation has stalled.
Risks are more balanced than in April, but downside risks from renewed conflict and financial market repricing persist.
She also said policymakers should preserve price stability, rebuild fiscal space, and strengthen adaptability.
Updated IMF Growth Forecasts for 2026 are for the US (2.3%), Germany: 0.7%, France: 0.6%, UK: 1.0%, China: 4.6%, Japan: 0.6%, India: 6.4%, Russia: 1.1%, Brazil: 2.4%, Saudi Arabia: 1.7% and Nigeria: 4.1%.
Sub-Saharan African economies are also expected to grow by 4.2% to 4.3% in 2026.
But this growth is threatened by tight global financial conditions, high public debt, and inflationary pressures from global supply shocks.
Central Africa’s growth is expected to rise to 3.8% due to sustained oil prices. But, South Africa’s projected to a GDP growth of between 1.2% and 1.5%.