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IMF expects world economy to grow a sluggish 3% this year, weighed down by Iran war but helped by AI
By Paul Wiseman, Associated Press at KSAT 12 (ABC affiliate)
· July 7, 2026
· 3 min read
The International Monetary Fund on Wednesday modestly downgraded its outlook for the world economy this year, citing the energy shock caused by the Iran war. But the fallout from the conflict is being partially offset by booming investment in artificial intelligence and other technologies.The IMF...
Key takeaway The IMF now expects the global economy to expand by a sluggish 3% in 2026, down from 3.
Why this matters in The San Antonio
San Antonio 's economy, closely tied to the national landscape, is likely to feel the effects of the global slowdown, albeit indirectly. The city's thriving tech industry, which has seen significant investment in recent years, may benefit from the booming AI sector, potentially offsetting some of the negative impacts of the Iran war. However, the expected increase in global consumer prices, driven by higher energy costs, could squeeze local businesses and consumers, particularly those in the tourism and hospitality sectors that are vital to San Antonio's economy. As the IMF forecasts assume a reopening of the Strait of Hormuz, local leaders will be watching closely to see how the situation unfolds and how it may impact the city's growth prospects. The resilience of the US economy, expected to grow 2.3% this year, may also provide a buffer for San Antonio, but the city's unique economic profile will require careful monitoring to navigate the challenges ahead.
About this story
Original reporting by KSAT 12 (ABC affiliate) . The San Antonio surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit KSAT 12 (ABC affiliate) . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: July 7, 2026 ·
Source: KSAT 12 (ABC affiliate) ·
Reading time: 3 min
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Frequently asked about this story
What is this story about? The International Monetary Fund on Wednesday modestly downgraded its outlook for the world economy this year, citing the energy shock caused by the Iran war. But the fallout from the conflict is being partially offset by booming investment in artificial intelligence and other technologies.The IMF...
When was this published? This article was first published on July 7, 2026 by KSAT 12 (ABC affiliate) and curated for The San Antonio readers.
Who reported this story? This story was reported by Paul Wiseman, Associated Press at KSAT 12 (ABC affiliate). To learn more about how The San Antonio selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The San Antonio, or browse our daily briefing and topic hubs .
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