The “surprisingly resilient” global economy is at risk of being disrupted by a sharp reversal in the AI boom, the IMF warned on Monday, as world leaders prepared for talks in the Swiss resort of Davos.
Risks to global economic expansion were “tilted to the downside”, the fund said in an update to its World Economic Outlook, arguing that growth was reliant on a narrow range of drivers, notably the US technology sector and the associated equity boom.
Nonetheless, it predicted US growth would strongly outpace the rest of the G7 this year, forecasting an expansion of 2.4 per cent in 2026 and 2 per cent in 2027. Tech investment had surged to its highest share of US economic output since 2001, helping drive growth, the IMF found.
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