The International Monetary Fund has forecast that the global economy will continue to grow steadily, projecting expansion of 3.3 per cent in 2026 and 3.2 per cent in 2027.
In its January update of the World Economic Outlook, released on Monday, the IMF said the forecast represents a slight upward revision for 2026, while projections for 2027 remain unchanged from October.
The Fund said the outlook reflects a balance between negative and positive forces, with uncertainty around global trade policies countered by strong investment in technology, particularly artificial intelligence.
It noted that technology-driven investment is strongest in North America and Asia, while monetary support, favourable financial conditions and private-sector flexibility are helping sustain growth globally.
The IMF projected global inflation to continue its downward trend, falling from 4.1 per cent in 2025 to 3.8 per cent in 2026 and 3.4 per cent in 2027. Inflation is expected to return to target more slowly in the United States than in other major economies.
Growth among advanced economies is forecast at 1.8 per cent in 2026 and 1.7 per cent in 2027, while emerging markets and developing economies are expected to grow at just over 4.0 per cent in both years.
In the Middle East and Central Asia, growth is projected to rise to 3.9 per cent in 2026 and 4.0 per cent in 2027, supported by increased oil output, robust domestic demand and structural reforms.
Sub-Saharan Africa is expected to record growth of 4.6 per cent in both 2026 and 2027, up from 4.4 per cent in 2025, aided by macroeconomic stabilisation efforts.
The IMF projected Nigeria’s economy to grow by 4.4 per cent in 2026 before moderating to 4.1 per cent in 2027.
In Latin America and the Caribbean, growth is forecast to slow to 2.2 per cent in 2026 before strengthening to 2.7 per cent in 2027. Emerging and developing Europe is expected to rebound from a slowdown in 2025, with growth averaging 2.3 per cent in 2026 and 2.4 per cent in 2027.
While warning that downside risks remain, including geopolitical tensions and reassessment of technology-driven growth expectations, the IMF said faster adoption of artificial intelligence and a sustained easing of trade tensions could further support global activity.
The Fund called on governments to restore fiscal buffers, maintain price and financial stability, reduce uncertainty and accelerate structural reforms.
