Home›Global Markets›Asia›IMF flags uneven growth as AI investment fuels some As…

IMF flags uneven growth as AI investment fuels some Asian economies

The IMF projects global growth of 3.0% in 2026 and 3.4% in 2027, while warning that AI-linked booms could raise financial risk.

Reported · Written up by our desk · Asia

AI is reshaping global growth prospects in a “mixed and divisive” way, with benefits concentrated in economies tied to the tech supply chain, according to an analysis by SCMP Economy.

The piece argues that where AI spending lifts demand for infrastructure and hardware, economic performance can improve, but it can also contribute to investment and market bubbles that raise the risk of future financial stress.

SCMP Economy points to an International Monetary Fund World Economic Outlook released July 8 as evidence of this split, noting that the IMF expects global growth to be 3.0% in 2026 and 3.4% in 2027, down from an average of 3.5% in 2024-25.

While the IMF’s outlook includes “pleasant surprises” about recent growth, it also highlights alerts beyond growth, reflecting concern that the AI-driven buildout may not be evenly distributed and could amplify instability.

More like this

Sources