The International Monetary Fund has published its World Economic Outlook, “Global Economy: Steady amid Divergent Forces,” projecting global growth of 3.3% in 2026 and 3.2% in 2027, both slightly higher than in the October 2025 World Economic Outlook. Global inflation is expected to continue falling, although US inflation is projected to return to target more gradually. The IMF attributes the baseline to technology investment, fiscal and monetary support, accommodative financial conditions, and private sector adaptability offsetting trade policy shifts. It flags downside risks from a potential reassessment of technology expectations and an escalation of geopolitical tensions, and calls for restoring fiscal buffers, preserving price and financial stability, reducing uncertainty, and implementing structural reforms.
International Monetary Fund 2026-01-19
International Monetary Fund World Economic Outlook projects 3.3% global growth in 2026 and 3.2% in 2027
The IMF's World Economic Outlook projects global growth of 3.3% in 2026 and 3.2% in 2027, with inflation expected to decline, though US inflation may return to target more slowly. The report highlights technology investment and fiscal and monetary support as key growth drivers, while noting risks from potential technology expectation reassessments and geopolitical tensions. It emphasizes the need for fiscal buffer restoration, price and financial stability, uncertainty reduction, and structural reforms.