The International Monetary Fund has downgraded its 2026 global growth forecast to a tepid 3% — down from the 3.1% projection in April — while simultaneously raising its headline inflation forecast by 0.3 percentage points to 4.7%. The revision reflects a world economy that's "weathered the shock from the war better than feared," but remains stuck in low gear, with trade growth projected to crash from 5% in 2025 to just 3.5% this year.

Behind the...