AI Investment Collapse Could Threaten Global Economy, Says IMF
The fund also warned that rising sovereign debt, higher bond yields, and cyberattacks pose threats to global financial stability.
The International Monetary Fund (IMF) has indicated that a significant decline in artificial intelligence investment could jeopardize global economic growth. This concern is compounded by existing vulnerabilities such as increasing government debt and cyber risks, which leave the world economy susceptible to further disruptions. The IMF’s analysis suggests that a steep drop in AI investment could trigger a sharp fall in asset prices, ultimately reducing global GDP by 1.1 percent by 2028.
- A sharp downturn in AI investment could threaten global economic growth.
- Rising government debt and cyber risks also make the world economy vulnerable.
- A steep drop in AI investment could lead to a sharp fall in asset prices.
- Global GDP could be cut by 1.1 percent by 2028 in a downside scenario.
- U.S. output could drop by 1.8 percent in the same scenario.
- The IMF released its World Economic Outlook during meetings in Bangkok, Thailand, on Oct. 13.
- The fund forecast global growth of 3.1 percent in 2026 and 3.4 percent in 2027.
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