IMF says AI will drive global growth as investments spread beyond the US

IMF Managing Director Kristalina Georgieva said the artificial intelligence investment boom is spreading beyond the United States and becoming a broader driver of global economic growth, helping offset economic pressure from the Iran war and the closure of the Strait of Hormuz. The IMF estimated in July that the global economy would grow 3% this year, compared with 3.5% in 2025, with updated forecasts expected in October.

IMF says AI will drive global growth as investments spread beyond the US The fund's latest analysis frames AI as a macro-critical shift capable of reshaping productivity, trade flows, and fiscal policy worldwide IMF Managing Director Kristalina Georgieva said the artificial intelligence investment boom is spreading beyond the United States and becoming a broader driver of global economic growth. Georgieva said other countries are increasing investment in data centers and related infrastructure, while economies connected to the AI hardware supply chain are also benefiting from rising demand. The expansion is helping offset some of the economic pressure from the Iran war and the closure of the Strait of Hormuz. Georgieva said the global economy has handled the resulting energy shock better than the IMF initially feared. The fund estimated in July that the global economy would grow 3% this year, compared with 3.5% in 2025. Updated forecasts are expected in October. Lower energy demand, emergency reserve releases, increased production outside the Gulf and additional renewable energy capacity have helped soften the impact of higher energy prices. Still, Georgieva warned that the shock is not over. Oil and gas reserves are declining ahead of the northern hemisphere winter, leaving the global economy vulnerable to another increase in energy prices. A renewed rise in oil prices could push inflation higher and force central banks to raise interest rates, increasing government borrowing costs and weighing on economic growth. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .