The International Monetary Fund (IMF) on Monday raised its global economic growth forecast for 2026 to 3.3%, an increase of 0.2 percentage points from its October projection. The IMF expects global economic growth of 3.2% in 2027.
The IMF also raised its U.S. economic growth forecast from 2.1% to 2.4%. China’s economic growth forecast was set at 4.5%, an upward revision of 0.3 percentage points from the previous forecast. Meanwhile, the eurozone’s economic growth forecast is 1.3%, an increase of 0.2 percentage points from the prior estimate.
The IMF noted in its report: “Global inflation is expected to decline, but U.S. inflation will gradually return to its target level. Key downside risks include a reassessment of technology expectations and an escalation of geopolitical tensions.” The report added that policymakers should “rebuild fiscal buffers, safeguard price and financial stability, reduce uncertainty, and implement structural reforms.”
