IMF lowers 2026 global growth forecast amid Mideast risks

On 9 July 2026, the IMF cut its 2026 world growth forecast, citing risks from new fighting in the Middle East and the fallout of the Iran war. The Associated Press said the IMF expects the world economy to grow a sluggish 3% this year, weighed down by the Iran war but helped by AI. The IMF raised its 2026 growth outlook for South Korea to 2.6% as chip demand offsets the Mideast crisis, and raised its Thai forecast. It expects Malaysia to grow 4.7% in 2026 and said rising prices threaten Nigeria's poverty reduction gains.