The International Monetary Fund (IMF) has raised its global growth forecast for 2026 to 3.1%. This is higher than its July estimate of 3%. However, growth remains below last year’s 3.5%. The forecast for 2027 stays unchanged at 3.4%, CNBC reported. The IMF published estimates in its October World Economic Outlook.
Investment linked to artificial intelligence (AI) has helped support the world economy. It has partly reduced the damage caused by rising energy costs. Economic activity during the year’s first half was stronger than expected. This happened despite the war in the Middle East and trade tensions.
IMF forecast for India
has raised India’s growth forecast to 7% for both FY27 and FY28. Its earlier estimates were 6.4% and 6.7%, respectively. Strong domestic demand and services activity are supporting growth.
This comes despite high oil prices and global tensions. India’s economic momentum could remain strong over both financial years.
Its inflation forecast for 2026 remains 4.7%. For 2027, the forecast has risen to 4.1%, from July’s 3.9%. Growth is also becoming more uneven across countries. Just 32 economies now account for 95% of global growth.
That number was 54 in April. Countries supplying the AI industry are performing better. Taiwan’s economy is forecast to grow 10.7% while South Korea’s could expand 3.3% this year.
(This is a developing story. Check back for more details.)