The International Monetary Fund (IMF) said in a new report released today that global growth is expected to reach 3.3% in 2026 and 3.2% in 2027, slightly higher than the forecasts published in the October edition of the World Economic Outlook.
“Inflation is expected to decline globally, but it will return to its target more gradually in the United States. Headline global inflation is projected to slow from an estimated 4.1% in 2025 to 3.8% in 2026 and then to 3.4% in 2027. These inflation projections are also broadly unchanged from those calculated in October and point to a more gradual return to target in the United States than in other major economies,” the IMF report states.
The Fund added that trade tensions have continued to ease, although they remain subject to occasional flare-ups. The dispute between China and the United States, particularly over controls on exports of semiconductors and rare earths, has quickly given way to a truce involving a reduction in bilateral tariffs until November 2026 and a suspension of export restrictions.
According to the IMF, growth in the Middle East and Central Asia is expected to accelerate from 3.7% in 2025 to 3.9% in 2026 and 4.0% in 2027, supported by rising oil production, resilient domestic demand, and ongoing reforms.
Growth is also projected to pick up in sub-Saharan Africa, increasing from 4.4% in 2025 to 4.6% in both 2026 and 2027, driven by macroeconomic stabilization and reform measures in several of the region’s largest economies.
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