IMF Raises 2026 Global Growth Forecast to 3.3 Pct

Washington, Jan. 19 (Jiji Press)–The International Monetary Fund said Monday that the global economy is estimated to grow 3.3 pct in 2026, up 0.2 percentage point from its previous projection last October. The fading impact of high U.S. tariffs and surging artificial intelligence-related investment will help push up global growth, the IMF said in its latest World Economic Outlook report. The IMF left its forecast for 2027 unchanged at 3.2 pct. IMF chief economist Pierre-Olivier Gourinchas said the AI boom could accelerate the global growth rate for 2026 by about 0.3 point through productivity gains. Citing an estimate shown in the October 2025 report that growth could be dented by roughly 0.4 point if investment slows or prices of AI-related stocks turn lower, he warned of growing risks and “far-reaching consequences” related to AI investment. By country, Japan’s economy is projected to grow 0.7 pct in 2026, up 0.1 point from the previous forecast, reflecting increased government spending under Prime Minister Sanae Takaichi’s “responsible and proactive” fiscal policy. The IMF raised its 2026 growth forecast for the United States by 0.3 point to 2.4 pct, noting fiscal expansion linked to major tax cuts and stock market gains fueled by AI-related investment. China’s growth forecast for the year was lifted 0.3 point to 4.5 pct, thanks to a 10-point reduction in U.S. synthetic drug-linked tariffs on Chinese goods in addition to Beijing’s fiscal stimulus measures, the IMF said. The growth projection for the eurozone was raised 0.1 point to 1.3 pct. END [Copyright The Jiji Press, Ltd.]