IMF LOWERS 2026 WORLD GROWTH FORECAST AS MIDDLE EAST RISKS LINGER

The International Monetary Fund (IMF) has revised downward its global economic growth forecast for 2026, citing persistent geopolitical risks in the Middle East and other uncertainties.

In its latest World Economic Outlook update, the IMF projected a slower pace of expansion than previously anticipated, warning that prolonged conflicts and supply chain disruptions could further dampen global activity. The organisation highlighted the need for coordinated policy responses to mitigate these risks.

IMF Chief Economist, Ms. Gita Gopinath, noted that while some economies show resilience, the overall outlook remains cautious. “Geopolitical tensions, particularly in the Middle East, continue to pose significant downside risks to the global economy,” she said.

The revision has prompted calls for increased international cooperation on trade, energy security, and economic stability.

Analysts expect central banks and governments to remain vigilant in their policy decisions amid the uncertain environment.