Global economy set to reach $124 trillion by 2026
Global economy set to reach $124 trillion by 2026 amid slowing growth, IMF warns
The world economy is projected to hit $124 trillion by 2026, according to the International Monetary Fund’s (IMF) latest outlook, but growth is expected to slow as rising protectionism, financial instability, and economic fragmentation weigh on global markets.
The United States ($34.8 trillion), China ($20.7 trillion), and Germany ($5.3 trillion) are set to remain the world’s three largest economies, maintaining their dominant positions in global GDP rankings.
Asia is projected to account for over 40% of global output, driven by the economic performance of China, India, and Japan. North America will retain a 30% share, while Europe’s portion continues to shrink amid challenges including high inflation, aging populations, and declining competitiveness.
The IMF also cautioned that threats to financial stability are mounting. Eroding institutional independence in key economies, combined with a potential repricing of technology stocks, could create volatility in global markets.
The report highlights the shifting balance of economic power and underscores the need for policymakers to navigate slowing growth while safeguarding financial resilience in an increasingly fragmented global economy.
