The International Monetary Fund has released an updated World Economic Outlook projecting global output growth will fall to 3% in 2026, down from 3.5% last year. The slowdown reflects persistent inflation, ongoing geopolitical tensions, and the effects of tight monetary policy. The IMF cited the US-Iran conflict and its impact on energy markets as key downside risks. Emerging markets face particular headwinds with higher borrowing costs and currency depreciation. The IMF urged central banks to remain vigilant against inflation while calling for fiscal discipline. The report highlights divergence between the robust US services sector and struggling manufacturing economies in Europe and Asia.