IMF scenario puts US equities 20% lower if AI gains stall
Selloffs in AI-related shares swept Asia on Tuesday, CBC reported, with South Korea’s Kospi sinking as much as 7 percent before closing 5.5 percent lower.
Thirty-two economies now account for 95 percent of global growth, down from 54 in April 2026.
“The global economy is not simply slowing or accelerating; rather, growth is being reallocated across countries according to their exposure to the war-induced supply shock and AI-related demand strength,” the report said.
Advanced-economy benchmark yields have climbed to multidecade highs on resurgent inflation, the expected path of policy rates and fiscal concerns, with technology firms borrowing to finance AI investment adding to the pressure.
Public debt in advanced economies is projected to reach 115 percent of GDP by 2031, from 108 percent in 2025.
