WASHINGTON — The International Monetary Fund expects the world economy to expand by approximately 3% in 2026 despite the Middle East conflict and rising energy prices. The IMF says alternative supplies and releases from energy reserves have helped countries absorb part of the economic shock.
However, global public and private debt is approaching the equivalent of 100% of worldwide GDP. Developing economies face particularly intense financial pressure as borrowing costs rise and access to international assistance becomes more limited.
The IMF is scheduled to publish revised projections during its annual meetings with the World Bank in Bangkok in October.
Why it matters: High debt and expensive energy reduce governments’ ability to address inflation, poverty and future economic emergencies, even if overall growth remains positive.
Status: Current IMF assessment confirmed; revised forecast expected in October
