More weak banks in IMF doomsday scenario as AI boom fuels risks
Said AI-related challenges could imperil banks even as profits soar.
The International Monetary Fund (IMF) has recently raised its forecast for global economic growth this year, but has also highlighted potential risks stemming from the rapid growth of the artificial intelligence (AI) sector and mounting debt levels. According to the IMF's latest Economic Outlook, the world economy is now expected to expand by 3.1 percent in 2026, a slight increase from the previous forecast of 3.0 percent. This growth projection is significantly lower than the anticipated 3.5 percent expansion in 2025.
The report, released as global economic and financial leaders convened in Bangkok for the fall meetings of the IMF and World Bank, suggests that growth in the United States will remain relatively stable at 2.3 percent for both 2026 and 2027. Collectively, advanced economies are projected to experience a modest growth rate of 2.1 percent in 2026, up from 2.0 percent in 2025, but will subsequently decelerate to 1.9 percent growth in 2027.
The IMF's forecasts are grounded in several key factors, including a nearly 41 percent surge in oil prices this year, averaging $96 per barrel. Additionally, global inflation is expected to stand at 4.7 percent in 2026, before declining to 4.1 percent in the following year. These projections are influenced by the surge in AI-driven financial activity and the challenges posed by rising debt levels.
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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