The IMF raised its 2026 global growth forecast by 0.1 percentage points to 3.1%, with growth projected to rebound to 3.4% in 2027, according to its October 2026 World Economic Outlook. Resilient advanced economies and increased AI investment underpin the upgrade, although growth is expected to slow from 3.5% in 2025 as high energy prices linked to the US–Iran war pose significant risks, particularly for low-income countries and energy-importing economies. US growth is forecast at 2.3% in both 2026 and 2027, while China’s expansion is expected to slow to 4.5% and 4.0%, respectively, largely due to weak domestic demand. Japan’s economy is forecast to expand by 0.7% in both years, while India is projected to grow by 7.0% annually over the same period. Eurozone growth is expected to ease to 1.1% this year before recovering to 1.2% in 2027, amid high energy costs and weak consumer confidence. The UK’s 2026 forecast was raised to 1.3%, while its 2027 outlook was lowered to 1.2%.