Source: Sharecast
In its latest World Economic Outlook, the IMF forecast global growth of 3.1% in 2026, up from 3%, and 3.4% in 2027 compared with an April forecast of 3.2%.
The IMF raised its outlook for several major advanced economies, including the UK, Germany and Spain, while downgrading France.
The fund expects the US economy to grow by 2.3% in both 2026 and 2027, broadly unchanged from previous projections.
In the eurozone, growth is forecast at 1.1% in 2026 and 1.2% in 2027, with Germany expected to rebound from 0.2% growth in 2025 to 1.3% next year before easing to 1.1% in 2027.
The IMF upgraded its 2026 forecast for Germany by 0.6 percentage points from its July update and by 0.5 points from its April projections.
France was a notable laggard, with growth seen slowing to 0.4% in 2026 before recovering modestly to 0.7% in 2027. The IMF cut both forecasts by 0.2 percentage points versus July.
Italy is forecast to expand by 0.8% in 2026 and 0.6% in 2027, while Spain is expected to remain one of the euro area's strongest performers, with growth of 2.5% and 1.8% respectively.
For the UK, the IMF forecast growth of 1.3% in 2026 and 1.2% in 2027. The 2026 projection was raised by 0.3 percentage points from July and by 0.5 points from April, although the 2027 outlook was trimmed by 0.1 point from both forecasts.
Japan is expected to grow by 0.7% in both 2026 and 2027, while Canada is forecast to expand by 1.1% and 1.7% respectively.
Meanwhile, the IMF forecast global growth of 3.1% in 2026 and 3.4% in 2027, with the 2027 forecast revised up by 0.2 percentage points from April.
The Fund said stronger-than-expected activity in the first half of 2026 had been supported by robust investment linked to artificial intelligence. However, it warned that growth remains increasingly uneven across regions.
Economies benefiting from technology exports, AI-related investment and favourable terms of trade have generally continued to perform well.
By contrast, energy-importing countries with limited exposure to the technology supply chain face weaker demand, higher import costs and pressure on public finances.
The IMF said global inflation is expected to rise to 4.7% in 2026 before easing to 4.1% in 2027, reflecting higher energy and food prices.
World trade growth is also expected to slow this year amid tariffs, supply-chain adjustments and broader geopolitical tensions.
Looking ahead, the Fund warned that risks remain tilted to the downside, including a prolonged conflict in the Middle East, renewed trade tensions and a potential correction in AI-related investment.
Reporting by Frank Prenesti for Sharecast.com