Global Economic Growth Slows with AI Promising Long-Term Boosts
The IMF projects slower global growth through 2026 amid challenges, while AI adoption offers potential long-term economic benefits despite short-term hurdles.
- • Global growth is set to slow to 3.2% in 2025 and 3.1% in 2026 per IMF forecasts.
- • Inflation will decline globally but remain above US targets.
- • Protectionism and uncertainty threaten economic expansion.
- • AI integration in businesses expected over next 3 to 10 years could boost productivity and innovation.
Key details
The global economic outlook for 2025-2026 indicates a slight slowdown in growth, with projections decreasing from 3.3% in 2024 to 3.2% in 2025 and further to 3.1% in 2026, according to the IMF's latest report. Advanced economies are expected to grow around 1.5%, while emerging markets may achieve a bit over 4%, benefiting from stronger monetary and fiscal policies. Inflation is forecasted to continue its global decline, yet it will remain above target levels in the U.S. Meanwhile, persistent uncertainty and a rise in protectionism pose significant risks to growth, alongside labor supply challenges. Policymakers are urged to implement transparent fiscal adjustments and structural reforms to sustain economic expansion. Against this cautious backdrop, artificial intelligence (AI) emerges as a key transformative factor. While currently AI usage is mainly personal productivity enhancements, a second wave focusing on professional and corporate applications is expected within three to ten years. Despite many AI projects failing to create immediate value, the technology promises to accelerate sectors such as healthcare and finance, improving efficiencies and reducing time to market for drugs. Although AI may displace some jobs, new roles related to data protection and tool auditing are anticipated to arise, balancing employment impacts. Ethical and societal considerations remain crucial as AI integration advances. These developments suggest that while short-term economic growth faces challenges, AI has the potential to generate significant long-term gains for the global economy and by extension, economies like France’s. (Sources: 109596, 109605)