IMF expects a global growth rebound next year but warns medium‑term prospects will remain below the recent two‑year average of 3.5% and describes the outlook as "lackluster." The fund says AI‑driven gains are highly uneven: nearly two‑thirds of additional trade in compute hardware comes from Taiwan and South Korea, while the US and China accounted for over 75% of net AI‑related imports last year, narrowing the breadth of the expansion. Only 32 economies now account for 95% of global output growt

IMF expects a global growth rebound next year but warns medium‑term prospects will remain below the recent two‑year average of 3.5% and describes the outlook as "lackluster." The fund says AI‑driven gains are highly uneven: nearly two‑thirds of additional trade in compute hardware comes from Taiwan and South Korea, while the US and China accounted for over 75% of net AI‑related imports last year, narrowing the breadth of the expansion. Only 32 economies now account for 95% of global output growth, down from 54 six months ago. The IMF cautions it is uncertain whether the AI demand surge will produce durable productivity-led supply gains and says it is simultaneously amplifying inflationary pressures and financial vulnerabilities. It still forecasts global inflation to ease from 4.7% this year to 4.1% next year (the 2025 level). In light of the bond‑market selloff and revealed budget strains, the IMF urges credible fiscal adjustment plans to rebuild buffers.