The International Monetary Fund published its January 2026 World Economic Outlook Update, projecting global growth of 3.3 percent in 2026 and 3.2 percent in 2027, revised slightly up compared with the October 2025 World Economic Outlook. Global inflation is expected to fall, although US inflation is projected to return to target more gradually. The update attributes the firmer growth outlook to technology investment, fiscal and monetary support, accommodative financial conditions, and private sector adaptability offsetting trade policy shifts. Key downside risks include a reevaluation of technology expectations and an escalation of geopolitical tensions, alongside calls for policymakers to restore fiscal buffers, preserve price and financial stability, reduce uncertainty, and implement structural reforms.
International Monetary Fund 2026-01-19
International Monetary Fund raises its global growth outlook to 3.3 percent for 2026 in the January 2026 World Economic Outlook Update
The International Monetary Fund's January 2026 World Economic Outlook Update 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 update highlights technology investment and fiscal support as growth drivers, while noting risks from technology reevaluation and geopolitical tensions, urging policymakers to restore fiscal buffers and ensure stability.