The upgraded forecast for this year is largely due to factors that provided temporary relief — a burst in activity as companies and households rushed to get goods in anticipation of high tariffs and a weaker dollar that bolstered global trade, the IMF said. Looking ahead, the outlook points to “dim prospects” both in the short and the long term, according to the report.
The International Monetary Fund warned that the global economy is showing signs of strains from sweeping US tariffs and protectionism — even though it so far has held up better than expected.
The global economy is expected to grow by 3.2% this year, up from 3% predicted in July, the Washington-based lender said in its latest World Economic Outlook on Tuesday. In 2026, growth is seen edging down to 3.1%.
