IMF WARNS AI BUBBLE BURST COULD HIT GLOBAL ECONOMY

THE IMF WARNS THAT AN AI INVESTMENT BUST COULD REDUCE GLOBAL ECONOMIC GROWTH BY UP TO 1.3 PERCENTAGE POINTS IN 2028, ACCORDING TO A DOWNSIDE SCENARIO, NOT ITS BASELINE FORECAST.

U.S. AI INFRASTRUCTURE SPENDING COULD EXCEED $10 TRILLION THROUGH 2032, WHILE ASIAN ECONOMIES INCREASINGLY DEPEND ON AI-DRIVEN EXPORTS.

THE KEY RISK: IF AI PROFITS AND PRODUCTIVITY FAIL TO MEET EXPECTATIONS, FALLING INVESTMENT COULD TRIGGER A GLOBAL STOCK SELLOFF AND ECONOMIC SLOWDOWN. ...