IMF says AI investment keeps global growth around 3%, with major Asia benefits
The IMF warned AI could lift growth while exposing markets to a correction, cyberattacks and higher inflation if profits or investment fade.
- On Monday, the International Monetary Fund raised its 2026 global growth forecast to 3.1% from 3.0%, citing robust artificial intelligence infrastructure investment sustaining the world economy despite energy supply shocks.
- Surging AI infrastructure investment is fueling massive debt issuance, with hyperscalers now accounting for 10% of global investment-grade bond issuance, up from less than 1% in 2024. The IMF warned this competition with sovereign bonds pressures already stressed financial markets.
- In its Global Financial Stability Report, the IMF identified an AI-driven market correction as one of three "salient risks" representing "plausible near-term catalysts for a sharp tightening of financial conditions." Rising leverage and "circular financing" could amplify any downturn.
- IMF Managing Director Kristalina Georgieva described AI as a "slow-moving tsunami" that could affect 40% of jobs worldwide, warning the shift from labor to capital threatens entry-level employment for young workers.
- World Bank President Ajay Banga offered a contrasting perspective, emphasizing "small AI" tools that do not depend on large language models to drive productivity gains for farmers and healthcare systems in emerging markets.
343 Articles
343 Articles
Africa: Ai to Affect 60 Percent of Global Jobs
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that artificial intelligence (AI) could affect about 40 per cent of jobs globally, urging governments to prepare workers for changes in the labour market.
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 […]
Graduates Face AI Job Crisis as IMF Warns Technology Could Wipe Out Entry-Level Jobs
The IMF has warned that AI could affect 40% of jobs worldwide, potentially reducing entry-level opportunities for graduates even as investment in the technology supports global growth.
IMF chief warns AI’s ‘slow-moving tsunami’ is coming—and it could leave Gen Z graduates stuck making lattes at Starbucks
‘I don't think any young person wants to be a barista in a coffee shop as their professional future,’ IMF Managing Director Kristalina Georgieva says.
REPLAY: IMF Holds Press Briefing on Global Financial Stability Risks
The International Monetary Fund holds a press briefing on Oct. 13 on its October 2026 Global Financial Stability Report, focusing on elevated financial stability risks despite resilient markets. The briefing addresses potential risks from an AI-driven market correction, a sharp rise in sovereign bond yields, and cyber threats. ...
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