IMF updates global growth forecast, warns of trade and AI risks

The International Monetary Fund (IMF) has updated its global economic forecast for 2026. It now projects the world economy will grow by 3.3%, slightly higher than before, largely due to a boom in artificial intelligence (AI).

However, the IMF warns that this growth could be threatened by rising trade tensions between major economies like Europe and the US. It also cautions that if the AI boom falters, global economic resilience would be at risk. The report included specific country updates, raising growth forecasts for India and South Korea while trimming the outlook for Italy.