IMF warns of trade tension risk to global growth

Trade tensions and a reversal in the AI boom are among the main risks to global economic growth, the IMF says.

Watch LiveBritish Broadcasting CorporationHomeNewsSportBusinessInnovationHealthCultureArtsTravelEarthAudioVideoLiveDocumentariesHomeNewsIsrael-Gaza WarWar in UkraineUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessExecutive LoungeTechnology of BusinessFuture of BusinessInnovationWatch DocumentariesTechnologyScienceArtificial IntelligenceAI v the MindHealthWatch DocumentariesCultureWatch DocumentariesFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsWatch DocumentariesArts in MotionTravelWatch DocumentariesDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthWatch DocumentariesNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingAudioPodcast CategoriesRadioAudio FAQsVideoWatch DocumentariesBBC MaestroDiscover the WorldLiveLive NewsLive SportDocumentariesHomeNewsSportBusinessInnovationHealthCultureArtsTravelEarthAudioVideoLiveDocumentariesWeatherNewslettersWatch LiveIMF warns of trade tension risk to global growth2 hours agoShareSaveJemma CrewandNick Edser,Business reportersShareSaveGetty ImagesTrade tensions and a reversal in the artificial intelligence (AI) boom are among the main risks to global economic growth, the International Monetary Fund (IMF) has warned.

Its comments came in its latest world economic outlook, where it described the global economy as "steady", with growth expected to remain "resilient" this year.

The IMF's forecast was produced ahead of Donald Trump's threat at the weekend to impose tariffs on eight European countries opposed to his proposed takeover of Greenland.

The fund also said the independence of central banks was "paramount" for global economic stability and growth.

The economic watchdog said global growth was projected to reach 3.3% this year - an increase from its previous forecast of 3.1% - before slowing slightly to 3.2% in 2027.

Speaking to the BBC, IMF chief economist Pierre Olivier Gourinchas said: "We have a picture of a global economy that is growing at - it's not outsized growth rates but it's quite resilient, quite robust.

"In a sense the global economy has been shaking off the trade disruptions of 2025, and it's coming out ahead of what we were expecting."

He said while the effects of Trumps' tariffs has been "definitely to slow down global activity", he added that there "have been other things that have been more than offsetting".

The IMF's report says the global economy has been helped by "tailwinds from surging investment related to technology, including artificial intelligence (AI)".

However, it said risks to the global outlook "remain tilted to the downside", warning that if expectations about AI growth turn out to be overly optimistic an abrupt market correction could be triggered.

Even a relatively mild market correction could have an impact, Gourinchas said, given how much share price gains have contributed to wealth gains in recent years. Other risks are emerging as firms increasingly take on debt to make AI investments.

"It doesn't take as much of a market reaction to have an impact on people&#

Source: BBC

Joab Peter's Blog

Giving you the best is what we have always to offer.

Post a Comment

Please Select Embedded Mode To Show The Comment System.*

Previous Post Next Post