Banks & Finance

IMF Forecasts 3.9% GDP Growth for Middle East and Central Asia in 2026

Global inflation is forecast at 3.8% this year and 3.4% next year
IMF Forecasts 3.9% GDP Growth for Middle East and Central Asia in 2026
Photo: Unsplash

The International Monetary Fund (IMF) expects GDP in the Middle East and Central Asia to grow by 3.9% in 2026, according to its latest report.

The fund’s analysts predict the region’s economy will expand by 4% in the coming year. Global economic growth is expected to remain stable at 3.3% in 2026 and 3.2% in 2027.

The IMF said the world economy should stay relatively steady as trade challenges are offset by strong investment in new technologies, including artificial intelligence.

Global inflation is forecast at 3.8% this year and 3.4% next year.

However, the IMF warned that trade disputes could increase uncertainty and slow activity. It said political and geopolitical conflicts could disrupt supply chains, financial markets and commodity markets.

Kursiv also reports that the IMF warned that rising geopolitical tensions and a possible escalation of Donald Trump’s tariff war could slow global economic growth and unsettle financial markets.