AI boom bolstered growth in global trade, benefiting China and India, IMF says

The International Monetary Fund predicts the global economy will exceed 3% real GDP growth this year, as strong investment in artificial intelligence offsets energy shocks from the war in the Middle East. According to the Bangkok Post and Investing.com, the IMF is forecasting 3.1% global growth for 2026 and 3.4% for 2027. This improvement is attributed to continued investment in AI infrastructure, leading to growth upgrades for countries supplying AI hardware, such as South Korea, Malaysia, Mexico, and Thailand, as well as advanced economies building AI platforms.

Business Recorder reports that demand for AI has bolstered growth in China, India, and other Asian countries, outpacing overall growth in global trade. IMF chief economist Silvana Tenreyro stated that global trade would have grown at a much slower rate without the AI boost. However, Tenreyro noted that global economic resilience is under strain and risks to growth are tilted to the downside.

The IMF expressed concern regarding rising debt loads and mounting downside risks. Tenreyro urged countries to begin cutting budgets to reduce deficits and suggested that central bankers pursue more restrictive policies, including raising interest rates, to return inflation to target levels.

Brief written by urgent.news from Business Recorder, Bangkok Post, Investing.com — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.