World Economy Defies Odds Amidst Trade Tensions

The world economy remains resilient despite protectionist trade policies and uncertainties, buoyed by strong tech investments. Growth is projected at 3.3% this year. The U.S. economy shows growth driven by tech investments, while China benefits from reduced tariffs. India's growth slows but remains strong.

The world economy showcases surprising resilience despite the backdrop of President Donald Trump's protectionist trade policies, according to a new report by the International Monetary Fund (IMF). This tenacity is partly attributed to a surge in artificial intelligence investments in North America and Asia.

The IMF projects a 3.3% global growth this year, remaining steady through 2025, and slightly above the 3.1% forecasted for 2026 in their earlier October report. IMF chief economist Pierre-Olivier Gourinchas emphasized the resilience, despite trade disruptions led by the U.S.

The U.S. economy is projected to expand by 2.4% this year, driven by the strongest technology investment pace since 2001. Meanwhile, China's growth is buoyed to 4.5%, aided by a trade truce reducing tariffs. India, now the fastest-growing major economy, anticipates growth deceleration to 6.4% in 2026.

(With inputs from agencies.)