The International Monetary Fund expects the global economy to grow 3% in 2026, down from 3.5% in 2025 and slightly below its earlier 3.1% forecast, as energy price shocks and supply-chain disruption tied to the Iran conflict weigh on activity. The fund said a wave of U.S.-led artificial intelligence investment is helping offset part of that drag by supporting productivity and corporate earnings, with U.S. growth for 2026 held at 2.3%. It projects global growth will rebound to 3.4% in 2027 if the conflict does not escalate further. The IMF said economies that export energy or sit inside AI-related supply chains have proved more resilient, while energy-importing countries without strong technology infrastructure face slower growth and more inflation pressure. Earlier details in the IMF update also included a higher 2026 inflation forecast of 4.7%, a cut to the euro area outlook, an increase in China's forecast to 4.6% and a reduction in India's to 6.4%, while warning that renewed conflict in the Middle East could tighten financial conditions and revive commodity volatility.