The International Monetary Fund projects global growth at 3% in 2026, slowing from a 3.5% average in 2024–25, as the Middle East war pushes energy prices 25% above pre-war levels & lifts global inflation to 4.7%. Artificial intelligence investment partially offsets the damage, supporting equity markets & technology-linked economies. India leads major economies at 6.4% growth, while the euro area struggles at 0.9% & the Middle East region slows sharply to just 0.7%.