IMF Raises 2026 Global Growth Forecast to 3.3% Amid AI Boom, Despite Trade Risks

• The IMF upgraded its 2026 global growth forecast to 3.3%, a 0.2 percentage point increase from October's estimate, matching its 2025 projection.
• The surge in artificial intelligence (AI) investment, particularly in the U.S. (2.4% growth forecast for 2026), is a primary driver of this optimistic outlook.
• Global economy shows unexpected resilience, with businesses adapting to trade tensions and some easing of U.S. tariffs (now 18.5% effective rate).
• China's 2026 growth forecast rose to 4.5% due to lower U.S. tariffs and export shifts, while the Eurozone's projection increased to 1.3% aided by public spending.
• IMF warns of potential inflation from rapid AI investment and risks of a tech market correction if productivity gains don't materialize, alongside ongoing geopolitical and supply-chain disruptions.

Why It Matters: Global growth outlook improves to 3.3% by 2026, driven by AI, but trade and tech risks persist.