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Originally published by Capital Business
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business
July 8, 2026
2d ago

IMF lowers 2026 global growth forecast amid Mideast risks

IMF lowers 2026 global growth forecast amid Mideast risks

The modest slowdown reflects the effects of the war in the Middle East, which are partly offset by accelerated demand-driven momentum in the global technology cycle, driven by advances in artificial intelligence and its adoption, the July report said...

✨ Key Highlights

The International Monetary Fund (IMF) has revised its global growth forecast downwards for 2026, citing risks from the Middle East conflict.

  • Global growth is projected to slow to 3.0 percent in 2026, down from an average of 3.5 percent in 2025.
  • The IMF, an international financial institution, released this projection in its latest World Economic Outlook report.
  • Despite the slowdown, advances in artificial intelligence are providing a partial offset through accelerated demand in the global technology cycle.

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Harambee DT SACCO Writes Off Sh230mn Amid Financial Discrepancies - July 2026

Harambee DT SACCO has written off Sh230.37 million due to unreconciled bank balances and fully impaired Sh42 million deposited with the troubled KUSCCO. In a separate development, KCB Bank is expanding its Islamic banking services with new Shariah-compliant solutions targeting Muslim customers, launching a new payment card and agency banking network to cater to this growing market. Additionally, the International Monetary Fund (IMF) has revised its global growth forecast downwards for 2026, citing risks from the Middle East conflict. These stories reflect different aspects of Kenya's financial sector alongside global economic headwinds affecting investment and growth projections.

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