The International Monetary Fund raised its forecast for global growth this year to 3.1%, up from the 3% it projected in July, CNBC reported. That is still slower than the 3.5% growth seen last year. The forecast for 2027 stayed at 3.4%.

The IMF released its World Economic Outlook at its annual meetings with the World Bank in Bangkok. "The global economy has been resilient, but that resilience is under strain, with risks tilted to the downside," Silvana Tenreyro, the IMF's chief economist, told reporters, RTÉ reported.

The IMF said investment in artificial intelligence is helping offset the hit from high energy prices tied to the Middle East war, The Straits Times reported. But growth is becoming more uneven. Just 32 countries now account for 95% of global growth, down from 54 countries in April, the IMF said.

The Gulf has been hit hardest. Saudi Arabia's economy is now expected to shrink 3.3% this year, compared with 1.7% growth predicted in July, The Straits Times reported. RTÉ said that was a five percentage point cut. The Middle East and Central Asia region is expected to contract 0.3%.

The IMF expects U.S. growth of 2.3% in both 2026 and 2027, CNBC reported. It sees China growing 4.5% this year, while India remains the fastest-growing major economy at 7%.

Global inflation is forecast at 4.7% this year, the IMF said. Its outlook assumes the Strait of Hormuz reopens in March 2027.

The IMF also warned about AI. If expectations about AI profits are reassessed, the boost "could stop abruptly," the report said, according to RTÉ. Tenreyro said monetary policy should remain "sufficiently restrictive" to bring inflation back to target, CNBC reported.

What we know: The IMF sees 3.1% world growth this year, with big downgrades for Gulf economies.
What we don't: How long the Middle East war will last, and whether the AI investment boom will hold up.