IMF says AI surge is cushioning global growth amid Middle East war
The IMF highlighted that rapid AI investment is offsetting some of the slowdown caused by the Middle East conflict, even as it trimmed its 2026 growth outlook.
According to the IMF chief, the ongoing war in the Middle East has dampened worldwide expansion, prompting a 0.5-point downgrade to the 2026 forecast. However, large-scale AI spending is acting as a buffer, sustaining economic activity. Venture firm Anthropic recently projected the AI market could reach a size comparable to the U.S. economy. The sector's momentum is also spurring new public listings, with Chinese AI firm DeepSeek reportedly preparing for an IPO in 2027.
Why it matters
AI spending is now a key factor in sustaining global growth despite war-related economic headwinds.
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