IMF sees AI supporting global economic growth

AI adoption, energy security, and economic resilience are becoming central factors shaping future global growth trends.

IMF says AI and conflict will shape global economic outlook

The International Monetary Fund (IMF) has identified geopolitical tensions and rapid technological development as two of the main forces shaping the global economy. According to its latest World Economic Outlook Update, global growth is projected to reach 3.0% in 2026 before rising to 3.4% in 2027, with investment in AI and digital technologies supporting economic activity despite continued geopolitical uncertainty.

The report identifies AI as an increasingly important source of productivity growth and investment, particularly for economies integrated into technology supply chains. Countries involved in AI hardware, digital infrastructure and advanced technology exports are expected to benefit from rising demand.

At the same time, conflict in the Middle East continues to create uncertainty through higher energy prices, supply chain disruptions and inflationary pressures. The IMF expects global inflation to rise temporarily in 2026 before easing, although the pace of recovery is likely to vary across regions depending on their exposure to energy markets and technological capacity.

The IMF says governments should strengthen economic resilience by maintaining price stability, rebuilding fiscal buffers and supporting investment in digital infrastructure, energy security and AI adoption.

Why does it matter?

The outlook highlights how economic growth is increasingly being shaped by two competing forces: technological innovation and geopolitical instability. While AI investment is emerging as a driver of productivity and competitiveness, conflict and supply chain disruptions continue to create significant risks for the global economy.

The report also suggests that countries able to invest in AI, digital infrastructure and resilient supply chains may be better positioned to benefit from future growth. At the same time, uneven technological capacity and continued geopolitical uncertainty could widen economic disparities between regions.

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