IMF cuts 2026 global growth forecast to 3% but projects rebound in 2027
The International Monetary Fund has lowered its global growth forecast for 2026 to 3% for the second time this year, citing uncertainty from the war in Iran, while predicting a rebound in 2027.
The International Monetary Fund (IMF) has cut its global growth forecast for 2026 to 3%, marking the second reduction this year. The IMF flagged "uncertainty and risks" brought on by the war in Iran as a key factor slowing global economic expansion. At the same time, the fund projects a rebound in 2027, though specific figures were not provided.
Separately, Spanish Prime Minister Pedro Sanchez responded to threats from Donald Trump that the United States would cut off all trade with Spain. The Spanish leader’s reaction underscores growing tensions between Washington and one of its European allies.
In France, a heatwave is putting the country's power system under pressure, raising concerns about energy security during the summer heat.
