<\/p>\n
The International Monetary Fund\u2019s (IMF) October World Economic Outlook says economic activity remained stronger than expected during the first half of 2026, supported partly by investment in artificial intelligence.<\/p>\n
<\/p>\n
However, the benefits are unevenly distributed. Countries involved in artificial intelligence (AI) supply chains or exporting energy have performed better, while energy-importing and low-income economies face higher costs, weaker demand and limited fiscal space.<\/p>\n
<\/p>\n
Sub-Saharan Africa is expected to grow by 4.5% in both 2026 and 2027. Nigeria\u2019s growth is projected at 4.2% in 2026 and 4.3% in 2027, while SA\u2019s economy is forecast to expand by 1% and 1.3%, respectively.<\/p>\n
<\/p>\n
The IMF expects global inflation to increase from 4.1% in 2025 to 4.7% in 2026 before declining to 4.1% in 2027.<\/p>\n
<\/p>\n
Higher energy, fertiliser, food, transport and insurance costs are driving price pressures. Average oil prices are projected at almost $96 a barrel in 2026, about 41% higher than in 2025.<\/p>\n
<\/p>\n
The IMF warned that prolonged Middle East conflict, cyberattacks, extreme weather and further trade restrictions could weaken growth and intensify inflation.<\/p>\n
<\/p>\n
A reassessment of expected AI profits and productivity gains could also reduce investment sharply, trigger market corrections and tighten financial conditions.<\/p>\n
<\/p>\n
Public debt remains a major vulnerability. Debt is projected to increase from 108% of gross domestic product in advanced economies in 2025 to 115% by 2031. Emerging and developing economies could record an increase from 74% to 84%.<\/p>\n
<\/p>\n
The IMF called for credible fiscal consolidation, stronger tax administration and more efficient spending while protecting infrastructure, skills development and vulnerable households.<\/p>\n
<\/p>\n
Temporary and targeted cash transfers were identified as the most efficient response to sharp food and energy price increases.<\/p>\n
<\/p>\n
Broad subsidies and price controls could require between three and 22 times more public financing to provide comparable assistance.<\/p>\n
<\/p>\n
The IMF also urged countries to strengthen renewable energy, electricity grids, digital infrastructure and workforce skills.<\/p>\n
<\/p>\n
International cooperation remained essential because conflict, commodity shocks, displacement, debt and technological change crossed national borders, the Report said.<\/p>\n
<\/p>\n
–IMF\/ChannelAfrica–<\/p>\n","protected":false},"featured_media":44013,"template":"","meta":{"_acf_changed":false,"_members_access_role":[],"_members_access_error":"","_links_to":"","_links_to_target":""},"news-type":[26],"class_list":["post-47844","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-general_news","entry"],"acf":{"short_description":"The global economy is projected to grow by 3.1% in 2026 before expanding by 3.4% in 2027, despite conflict, high energy prices and mounting debt pressures.","published_date":"","news_description":"The global economy is projected to grow by 3.1% in 2026 before expanding by 3.4% in 2027, despite conflict, high energy prices and mounting debt pressures.","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/47844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":2,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/47844\/revisions"}],"predecessor-version":[{"id":47846,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/47844\/revisions\/47846"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/44013"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=47844"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=47844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}