IMF raises its forecast for world growth this year but warns of risks from AI boom and debt
BANGKOK — The International Monetary Fund on Tuesday slightly upgraded its outlook for the world economy for this year, while warning of growing risks from rising debt, including the financial frenzy around artificial intelligence. The IMF says it expects the global economy to grow at a 3.1 percent pace this year. That's up from its July forecast for 3.0 percent growth and well below the 3.5…
The International Monetary Fund has increased its forecast for global economic growth in 2026, but has also highlighted the risks posed by the rapid expansion of artificial intelligence and the growing national debt levels. According to the IMF's latest Economic Outlook, the world economy is expected to expand by 3.1 percent this year, up from the previous forecast of 3.0 percent and significantly lower than the anticipated 3.5 percent growth in 2025.
The report also projects that growth will pick up again in 2027, reaching 3.4 percent. In the United States, economic growth is expected to remain stable at 2.3 percent for both 2026 and 2027. The advanced economies, collectively, are forecast to grow by 2.1 percent in 2026, which is an increase from 2.0 percent in 2025, and then slow to 1.9 percent growth in 2027.
The projections are made under the assumption of a 41 percent surge in oil prices this year, with the average price reaching $96 a barrel. The global inflation rate is predicted to be 4.7 percent in 2026, with a further reduction to 4.1 percent next year. These forecasts are based on the volatility of oil prices and the anticipated global inflation rates.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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