IMF Hikes Global Growth to 3.1% While Slashing Argentina’s Forecast to 2.1%

IMF Hikes Global Growth to 3.1% While Slashing Argentina’s Forecast to 2.1%

The International Monetary Fund raised its 2026 global growth forecast to 3.1 percent but cut Latin America's outlook and sharply downgraded Argentina as the world economy splits between booming and shrinking regions.

· 2 min read ·
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The International Monetary Fund (IMF) has slightly raised its forecast for global economic growth in 2026 to 3.1 percent, even as it cut its outlook for Latin America and the Caribbean and sharply downgraded Argentina, according to its latest World Economic Outlook report [260880][260872][261099].

The fund also projects global growth of 3.4 percent in 2027 and expects global inflation to rise to 4.7 percent this year, driven by energy and food prices [261099].

The IMF lowered its 2026 growth forecast for Latin America and the Caribbean to 2.3 percent, a small reduction of 0.1 percentage points from its July estimate [261099]. It also sharply cut its forecast for Argentina from 3.5 percent to 2.1 percent, while Chile and Uruguay were among the other countries in the region facing large downward revisions [261099].

In contrast, the IMF revised its economic growth forecasts upward for India and the Association of Southeast Asian Nations (ASEAN), reflecting stronger-than-expected domestic demand and resilient investment in the region [261309].

The fund warned that the world economy is splitting apart, pulled in different directions by two forces: conflict in the Middle East, which is hurting some regions, and the artificial intelligence (AI) boom, which is boosting others [260872]. The Middle East and Central Asia are set to move in the opposite direction from the rest of the world, with the IMF revising the region's growth forecast down to minus 0.3 percent — the largest downward revision of any region, meaning its economy will shrink rather than grow [260956].

The figures were released on Monday in the IMF's World Economic Outlook report, presented in Bangkok during the annual meetings of the IMF and the World Bank [261099].

Sources

IMF cuts Latin America growth forecast, slashes Argentina's #261099IMF: Global Growth to Hit 3.1% in 2026, But Middle East Set to Shrink #260956IMF Raises 2026 Growth Forecast to 3.1%, Warns of a World Economy Split in Two #260872IMF raises India, ASEAN growth forecasts #261309IMF raises 2026 global growth forecast to 3.1 percent #260880IMF raises 2026 global growth forecast to 3.1 percent #260881

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