The Iran war’s “scarring effects”—accumulating as the conflict enters its seventh week—have pushed global growth prospects lower, says International Monetary Fund (IMF) managing director Kristalina Georgieva.
Next week’s World Economic Outlook will map out several possible paths amid the uncertainty.
Yet Georgieva says that even the best‑case scenarios now assume slower worldwide growth.
This past fall, the IMF projected global growth of 3.1 percent in 2026, a slight drop from 3.2 percent in 2025.
An investment boom from the buildout of artificial intelligence (AI) infrastructure and supportive financial conditions would have generated substantial momentum for the economy.
Looking ahead, the international economy will face a turbulent climate to navigate….