IMF projects 3.1% global growth this year and 3.4% in 2027

Global growth is forecast at 3.1 percent this year and 3.4 percent in 2027, according to the IMF's October 13 release accompanying its World Economic Outlook. The fund puts inflation at 4.7 percent this year, with energy and food prices keeping pressure on households.

The risks run both ways. Research official Deniz Igan said overly optimistic expectations for artificial intelligence could trigger financial market corrections, while earlier productivity gains could improve the outlook.

The fund also warned that prolonged Middle East tensions, rising sovereign bond yields and renewed trade tensions could weaken growth. It called for governments to rebuild fiscal space and keep support for households facing higher food and energy costs temporary and targeted.