AI investment props up global growth, but war and debt threaten outlook, IMF says
By David Lawder BANGKOK, Oct 13 (Reuters) - The global economy will still manage to top 3% real GDP growth this year as strong AI investment offsets the energy shock from the war in the Middle East, but downside risks are mounting and more countries are being left behind and vulnerable to rising debt loads, the International Monetary Fund said on Tuesday. Despite a more protracted conflict that…
Global GDP growth is projected to exceed 3% in 2026, according to the International Monetary Fund, thanks to robust artificial intelligence investment that counters the energy shock caused by the Middle East conflict, the IMF stated on Tuesday. However, the outlook has become more challenging due to the prolonged nature of the war, which has kept oil prices above $100 per barrel.
Despite this, the IMF predicts global growth for 2026 at 3.1%, a small increase from its July forecast of 3.0%. The World Economic Outlook report, delivered as leaders of the global economy and finance gather in Bangkok for the IMF and World Bank annual meetings, is consistent with the most optimistic scenario released in April but falls short of the 3.5% growth anticipated for 2025.
The IMF highlights mounting downside risks, with more nations becoming marginalized and susceptible to increasing debt burdens.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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