The International Monetary Fund (IMF), in its latest World Economic Outlook (WEO), lifted its 2026 global growth projection by 0.1 percentage point to 3.1%, compared with 3.5% growth in 2025. The 2027 forecast stays at 3.4%, and global inflation is expected to hit 4.7% in 2026. The report flags the Iran war and higher energy prices as risks for energy-importing and low-income nations, while spending on AI is supporting expansion in certain rich economies. The Middle East and Central Asia region is set to shrink by 0.3% in 2026, whereas advanced economies are projected to expand by 2.1%.