IMF Sticks to 3% Global Growth Forecast Amid Ongoing Energy Shock

The International Monetary Fund (IMF) has maintained its forecast of 3% global growth for 2026, despite concerns over the ongoing energy shock triggered by the Middle East conflict.

According to IMF spokesperson Julie Kozack, the global economy has shown resilience in the face of the crisis, with countries tapping into oil and gas reserves, shifting to alternative energy sources, and implementing demand-suppression measures.

The IMF notes that while global inflation expectations have risen somewhat, long-term inflation expectations remain stable. However, the Fund warns that pressure from global public debt continues to intensify, with global debt levels approaching 100% of countries' gross domestic product (GDP), the highest level since World War II.

The IMF also highlights the opposing forces at play in the global economy: rising energy prices on one side, and the positive demand support provided by the technology cycle led by artificial intelligence (AI) on the other.