IMF expects world economy to grow a sluggish 3% this year, weighed down by Iran war but helped by AI

The IMF forecasts 3% global economic growth in 2026, down from 3.5% in 2025, due to energy shocks from the Iran war but partially offset by AI and technology investments. The U.S. is expected to grow 2.3%, while the eurozone and China face slower expansion, and India remains the fastest-growing major economy at 6.4%.