IMF Downgrades Global Economic Growth Forecast To 3% Amid Iran War

The International Monetary Fund (IMF) has downgraded its 2026 global economic growth forecast to 3%, down from 3.5% posted in 2025 with the impact of the Iran war expected to negate gains made by the ongoing AI boom. According to the IMF, oil prices will average ~32% higher in the current year compared to the previous year while global consumer prices are set to jump 4.7%, halting two years of cooling inflation. However, the AI investment boom is expected to provide one of the few bright spots, with productivity gains helping limit the damage from…