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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) — San Antonio
· 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 Terrell Hills News
For Terrell Hills residents, the IMF's forecast of sluggish global economic growth has tangible implications. As a community within the San Antonio area, local businesses and consumers are likely to feel the pinch of rising energy prices, which are expected to increase by nearly 32% this year. However, the booming investment in artificial intelligence and other technologies could provide a silver lining, as the US economy is expected to grow a solid 2.3% this year. This growth could have a positive ripple effect on the local economy, particularly in industries that benefit from AI investment. Additionally, as a major city in the US, San Antonio's economy is likely to be more resilient to the global downturn, which could help mitigate the impact on Terrell Hills. As the situation unfolds, it will be crucial to monitor how these global trends affect local businesses and residents, and how the community can capitalize on the opportunities presented by emerging technologies.
About this story
Original reporting by KSAT 12 (ABC affiliate) — San Antonio . Terrell Hills News 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) — San Antonio . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: July 7, 2026 ·
Source: KSAT 12 (ABC affiliate) — San Antonio ·
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) — San Antonio and curated for Terrell Hills News readers.
Who reported this story? This story was reported by Paul Wiseman, Associated Press at KSAT 12 (ABC affiliate) — San Antonio. To learn more about how Terrell Hills News selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from Terrell Hills News, or browse our daily briefing and topic hubs .
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