The global economy is still on a path to slower growth, IMF says

The global economy is still on a slower growth track in the years ahead, the IMF says — even if tariff threats proved to be less economically damaging than previously believed.

Why it matters: New projections from the IMF show a brighter outlook relative to early 2025, though dimmer prospects compared to those outlined this time last year. • The group is skeptical the AI boom, at least in the near-term, can make up for the global economy's tariff hit — and warn that there is risk of an AI-related bubble popping.

What they're saying: "[D]espite multiple offsetting drivers, the tariff shock is further dimming already lackluster growth prospects," IMF chief economist Pierre-Olivier Gourinchas writes in a blog released alongside the new forecasts. • "Even in the United States, growth is