The International Monetary Fund (IMF) has issued a warning regarding significant risks to global economic growth, primarily stemming from rising trade tensions and a potential decline in the artificial intelligence (AI) sector.
In its latest world economic outlook, the IMF described the global economy as 'steady', with expected growth remaining 'resilient' this year, despite these emerging challenges.
The warnings came in light of a recent threat from former President Donald Trump to impose tariffs on eight European nations opposing his controversial Greenland acquisition proposal.
The IMF projected global growth at 3.3% for this year, a slight upgrade from a previous forecast of 3.1%, with an anticipated modest decline to 3.2% by 2027. On BBC, IMF chief economist Pierre Olivier Gourinchas noted, 'The global economy is growing at a steady pace, showing resilience post-2025 trade disruptions.'
Despite these positive indicators, the IMF cautioned that risks remain heavily weighted toward the downside. Both trade disputes and a pessimistic outlook for AI growth could spark abrupt market corrections, which would negatively impact overall economic stability.
Moreover, the IMF emphasized the importance of preserving central bank independence as critical for managing inflation expectations and maintaining macroeconomic stability. Recent events, including a criminal investigation into US Federal Reserve chair Jerome Powell, have also highlighted the precarious balance these institutions must navigate amidst political pressures.
Gourinchas warned that without central bank independence, economic deterioration could occur rapidly, thereby underscoring the need for decisive policy measures to mitigate these challenges and sustain growth momentum worldwide.
