Global Growth Resilient Amid AI Boom and Easing Trade Tensions: IMF Outlook

The International Monetary Fund (IMF) has raised its global growth forecasts for 2026 to 3.3%, reflecting adaptability to reduced U.S. tariffs and an AI investment boom. Despite potential risks, AI could significantly boost global growth if productivity gains are realized, while geopolitical tensions remain a downside risk.

The International Monetary Fund (IMF) has adjusted its 2026 global growth forecast upwards, citing adaptability to reduced U.S. tariffs and a surge in AI investments as contributing factors. The IMF now projects global GDP growth at 3.3% for 2026, up from its October estimate.

The boost in growth outlook is credited to businesses finding ways around higher U.S. tariffs and technological advancements driving asset wealth and productivity expectations. Key sectors like AI infrastructure investments are anticipated to propel U.S. growth to 2.4% in 2026.

While technology investments are accelerating activities in regions like Spain and Britain, the IMF warns of potential risks, including AI-driven inflation and geopolitical tensions. However, significant upside potential exists if AI adoption advances rapidly, potentially elevating medium-term growth rates globally.

(With inputs from agencies.)