IMF says AI investment keeps global growth around 3%, with major Asia benefits
- On Tuesday, The International Monetary Fund warned against "complacency" in global financial markets, citing risks from artificial intelligence-driven selloffs, rising government bond yields, or cyberattacks as potential threats to still-resilient markets.
- Mounting global public debt nearing 100% of GDP collides with heavy AI-linked borrowing by tech giants like Alphabet Inc and Meta Platforms, straining bond markets previously dominated by sovereign issuers.
- Athanasios Vamvakidis, deputy director in the IMF's Monetary and Capital Markets Department, identified potential AI-driven selloffs and spiking bond yields as "plausible near-term catalysts" policymakers must monitor to prevent systemic instability.
- Software vendors had almost no time to patch vulnerabilities in over 70% of cases this year, prompting the IMF to call for stricter oversight of third-party technology vendors and enhanced cybersecurity capacity.
- While these threats might be manageable individually, the IMF cautioned that risks "could become systemic...if they are amplified by underlying vulnerabilities," urging policymakers to curb excessive use of derivatives and margin loans.
226 Articles
226 Articles
AI Investment Collapse Could Threaten Global Economy, Says IMF
The International Monetary Fund (IMF) said that a sharp downturn in artificial intelligence investment could threaten global economic growth, as rising government debt and cyber risks also leave the world economy vulnerable to further shocks. In its latest World Economic Outlook, released during the IMF and World Bank annual meetings in Bangkok, Thailand, on Oct. 13, the fund forecast global growth of 3.1 percent in 2026 and 3.4 percent in 2027.…
IMF Sees Middle East Conflict As Top Global Economic Threat While AI Investment Offers Hope
The International Monetary Fund has identified the energy crisis sparked by the Middle East war as the single greatest risk facing the global economy heading into next year. The fund projects global growth of 3.4% next year, offering a cautiously optimistic baseline even as geopolitical pressures continue to weigh heavily on energy markets and broader […]
The large AI developers are using so much money and offering such high interest rates that it is making it very expensive to finance the US national debt. This trend also threatens the US with an economic slowdown.
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