IMF Warns Mideast War Will Widen Global Income Gap as 2026 Growth Holds at 3.1%
Updated
Updated · The New York Times · Oct 13
IMF Warns Mideast War Will Widen Global Income Gap as 2026 Growth Holds at 3.1%
3 articles · Updated · The New York Times · Oct 13
Summary
The IMF said a prolonged Middle East conflict would deepen the divide between richer and poorer countries, especially oil-importing low-income economies with weak tech sectors.
Its latest outlook kept global growth at a lackluster but stable 3.1% in 2026 and 3.4% in 2027, while warning those averages mask a reallocation of growth across economies.
Inflation is now seen rising to 4.7% this year and 4.1% next year as high energy and fuel prices keep squeezing household budgets.
Silvana Tenreyro, the fund's chief economist, said the global economy has been resilient but that resilience is nearing its limits as policymakers gather in Bangkok for the IMF-World Bank meetings.