7 hours agoAI boom helps keep global economy afloat despite war and debt, IMF warns<\/p>\n
The global economy is getting a major boost from the artificial intelligence investment boom, helping offset the economic fallout from the war in the Middle East, but the International Monetary Fund warns that a downturn in AI spending could threaten future growth.<\/p>\n
The IMF on Tuesday raised its forecast for global economic growth to 3.1% in 2026, up from 3.0% in July, citing strong investment in AI infrastructure as a key driver of the improved outlook, Reuters reported.<\/p>\n
The U.S. economy is projected to grow 2.3% this year, supported by consumer spending, tax cuts and AI investment.<\/p>\n
But the IMF cautioned that the technology boom also poses risks. If anticipated AI productivity gains fail to materialize, triggering a pullback in investment and financial-market turmoil, global economic output could fall 1.1% below its baseline forecast by 2028, with U.S. output declining 1.8%.<\/p>\n
“The global economy has been resilient, but that resilience is reaching its limits, so we need to move from just coping to rebuilding,” IMF chief economist Silvana Tenreyro told reporters.<\/p>\n
The IMF also warned that AI’s economic benefits are increasingly concentrated in a handful of countries, while mounting government debt, particularly in advanced economies, could drive up borrowing costs and further threaten global growth.<\/p>\n
Reuters contributed to this report.<\/p>\n","protected":false},"excerpt":{"rendered":"7 hours agoAI boom helps keep global economy afloat despite war and debt, IMF warns The global economy…\n","protected":false},"author":2,"featured_media":881177,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,4,27304,829,2413,3,74,965],"class_list":["post-881176","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-breaking-news","tag-current-news","tag-latest-news","tag-national-news","tag-news","tag-technology","tag-world-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/881176","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=881176"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/881176\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/881177"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=881176"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=881176"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=881176"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}