The IMF Managing Director, Kristalina Georgieva, said on Monday that global inflation is expected to fall to 3.8% in 2026 and drop further to 3.4% in 2027. She attributed the decline to slowing global demand and lower energy prices.
Speaking at an Arab financial forum in Dubai, Georgieva highlighted the resilience of the global economy despite major shifts, including geopolitical tensions, changing trade policies, advances in technology, and demographic trends.
She stressed the need for stronger economic cooperation between countries to tackle the fragmentation of global trade. According to Georgieva, trade has held up better than expected, continuing to grow even if slightly slower than overall global economic growth.
In short, the IMF expects inflation to ease while calling for more cooperation and integration in global trade to support continued stability.
