IMF Raises Global Economic Growth Forecast on Stronger U.S. Demand

The International Monetary Fund upgraded its global growth forecast for this year, spurred by stronger-than-expected U.S. demand and slowing inflation worldwide that will let central banks continue to cut interest rates.

The IMF raised its projection to 3.3% in an update to its World Economic Outlook on January 17, 0.1 percentage point more than its previous forecast in October. It kept the estimate for 2026 unchanged at 3.3%.The improved growth outlook is mainly because of the U.S., which got the biggest upgrade among major economies to its gross domestic product, rising 0.5 percentage point to 2.7%. At a global level, however, that’s largely offset by lower expectati…