Steady GDP growth, the benefits of AI and overcoming the uncertainty swirling around Donald Trump’s tariffs.
The key headlines with the International Monetary Fund edging its 2026 global growth forecast higher as businesses and economies adapt to US tariffs and highlighting the ongoing AI investment boom.
In its World Economic Outlook update, the IMF forecasts global GDP growth at 3.3% for next year.
"We find that global growth remains quite resilient," IMF chief economist Pierre-Olivier Gourinchas said, adding that the Fund's 2025 and 2026 growth forecasts now exceed predictions made in October 2024, before Trump was elected to a second term.
"In a sense, the global economy is shaking off the trade and tariff disruptions of 2025 and is coming out ahead of what we were expecting before it all started."
He said businesses had adapted to higher US tariffs by rerouting supply chains, while trade agreements had lowered some duties and China had shifted exports to non-US mark...
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