IMF warns of trade tension risk to global growth

AI Summary
The International Monetary Fund (IMF) warned that trade tensions and a potential reversal of the AI boom pose risks to global economic growth. In its latest world economic outlook, the IMF projects global growth to reach 3.3% this year, up from a previous forecast of 3.1%, before slowing to 3.2% in 2027. While the IMF acknowledges that trade disruptions, including tariffs, have slowed global activity, other factors have offset these effects. The report highlights that investments in technology, particularly AI, have contributed to global economic growth. However, the IMF cautions that over-optimistic expectations about AI growth could trigger a market correction, impacting wealth and potentially leading to reduced consumption and investment. The IMF also emphasized the importance of central bank independence for global economic stability.
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