IMF cuts global growth forecast, raises China outlook

(ECNS) -- The International Monetary Fund on Wednesday cut its global economic growth forecast for 2026 to 3% while raising its projection for China's economy to 4.6%.

According to the IMF's updated World Economic Outlook, the 0.1-percentage-point downgrade to global growth reflects the impact of conflicts in the Middle East, partly offset by demand-driven growth in the artificial intelligence sector.

Tourists visit the Fuzi (Confucius) Temple scenic area in Nanjing, East China's Jiangsu province, May 3, 2026. (Photo: China News Service)

China was among the few major economies to receive an upward revision, with its growth forecast raised by 0.2 percentage points because of strong output in high-tech manufacturing and solid export performance.

The IMF projected 2026 growth of 1.7% for advanced economies and 3.8% for emerging market and developing economies. It also forecast global inflation at 4.7%, driven by food and energy costs, while global trade volume growth is expected to slow to 3.5%.

(By Helen Mo, intern Lin Qiaochu)