IMF slashes global growth forecast

In its latest World Economic Outlook, the International Monetary Fund reduced its 2026 global growth projection to 3.1%, citing the severe impact of the Middle East conflict.

The report highlights an 'unprecedented' energy crisis that could plunge expansion to just 2% if infrastructure damage persists into next year.

The United Kingdom suffered the most dramatic downgrade of any major economy, reflecting its high exposure to inflationary pressures and volatile energy markets.

Analysts warn that the combination of stagnant growth and rising costs has placed the world economy on a precarious path toward stagflation.