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World Economy Shows Resilience But Nears Limits As Risks Build, IMF Warns
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Moneycontrol•13-10-2026, 09:41
World Economy Shows Resilience But Nears Limits As Risks Build, IMF Warns
- •The International Monetary Fund projects global growth to accelerate to 3.4% in 2027, with a slight raise for this year to 3.1%.
- •IMF Chief Economist Silvana Tenreyro warned that global resilience is reaching its limits due to persistent energy squeezes and rising financial risks.
- •The artificial intelligence boom is driving hardware demand and productivity potential, but it also introduces financial risks and inflationary pressures.
- •Global economic growth rests on a narrowing base, with only 32 economies now accounting for 95% of overall expansion.
- •Major economies face varied outlooks, with the US forecast to grow 2.3% in 2027 while France sees downgrades and Germany expects 1.1% growth.
Key Questions Answered
According to the IMF's World Economic Outlook, global economic growth is expected to accelerate to 3.4% in 2027, which remains unchanged from the July update.
The IMF warned that the world economy is nearing its limits as energy inventories run low following the US attack on Iran, the artificial intelligence boom introduces financial risks, and surging bond yields make trimming budget deficits urgent.
The IMF raised India's FY27 growth forecast to 7% from 6.4%, and its FY28 forecast to 7% from 6.7%, citing strong domestic demand and robust services activity that help withstand global disruptions.
