The International Monetary Fund (IMF) says it now expects the global economy to grow an annualized 3.1% this year.
The global financial institution headquartered in Washington, D.C. cited resilience in advanced economies and increased artificial investments (A.I.) investments as the main growth catalysts.
However, growth in 2026 is expected to slow from 3.5% in 2025, while high energy prices linked to the Iran war pose significant risks to the organization’s outlook.
Economic growth in Europe is forecast to slow to 1.1% this year before a slight acceleration in 2027, the IMF said.
The 2026 forecast for Europe in the latest “World Economic Outlook” from the IMF was a modest upgrade of 0.2 percentage points from its July report.
The Iran war and Russia's invasion of Ukraine have sent oil and natural gas costs surging around the globe, a major threat to Europe, which is a net energy importer.
Growth in Germany, Europe's largest economy, is expected to reach 1.3% this year, and Spain's GDP growth is likely to come in at 2.5%.
For the United Kingdom (U.K.), the IMF raised its growth forecast for this year to 1.3%, up 0.3 percentage points from its July outlook.
Growth in China, the world's second-largest economy, is expected to slow by 0.5 percentage points to 4.5% this year, mostly due to weak domestic demand.
Related Stories
