Washington, July 08 (QNA) - The International Monetary Fund (IMF) on Wednesday downgraded its global growth forecast for 2026 to 3%, warning of persistent risks posed by the war in the Middle East and potential corrections in market expectations regarding artificial intelligence.
In a statement, IMF explained that the global economy avoided a sharper contraction as a result of the war, as the momentum of demand for the technology sector helped offset the decline in energy supplies linked to the conflict. 
It predicted that growth would rebound to 3.4% in 2027, but the figure remains below the average of 3.5% recorded in 2024 and 2025.
The Fund raised its inflation projections for the current year by 0.3% to 4.7% compared with its April forecast but expected inflation to decline to 3.9% next year.
It also noted that energy prices are currently 25% higher than they were before the outbreak of the war on Feb. 28 and are expected to remain elevated, pointing out that the global economy as a whole has so far succeeded in weathering the shock caused by the war better than had been feared.
IMF further revealed positive expectations for energy exporters and countries that are closely integrated with the technology sector. However, it projected lower growth rates for the economies of commodity-importing countries that are not well positioned to benefit from developments in artificial intelligence. (QNA)