Global growth to slow to 3.2% by 2026 - IMF

The International Monetary Fund in its latest World Economic Outlook report shows that the global economy is slowing down as countries are adapting to a new phase of trade tariffs and fiscal adjustments.

According to the report, the fund projected that global growth is expected to ease from 3.3% in 2024 to 3.2% in 2026, despite an uptick revision from its April forecast.

The fund said the global landscape has been reshaped by new policy measures, with some of the stiffer tariffs impacted by trade deals in early 2025.

However, advanced countries are expected to expand by about 1.5%, while emerging markets and developing economies will grow just above 4%, reflecting resilient domestic demand in Asia and parts of Latin America.

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Inflation is also forecast to drop despite being above targets in the US.

The IMF warned that ongoing policy uncertainties could undermine market volatility and stability, while posing risks on the downside.

The fund further urged policymakers to rebuild fiscal buffers, tighten their central bank reserves to help restore business and investor confidence for the short to long medium term.

SP/AE

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