Trade tensions and a reversal in the artificial intelligence (AI) boom are among the main risks to global economic growth, the International Monetary Fund (IMF) has warned.
Its comments came in its latest world economic outlook, where it described the global economy as 'steady', with growth expected to remain 'resilient' this year.
The IMF's forecast was produced ahead of Donald Trump's threat at the weekend to impose tariffs on eight European countries opposed to his proposed takeover of Greenland.
The fund also said the independence of central banks was 'paramount' for global economic stability and growth.
The economic watchdog said global growth was projected to reach 3.3% this year - an increase from its previous forecast of 3.1% - before slowing slightly to 3.2% in 2027.
Speaking to the BBC, IMF chief economist Pierre Olivier Gourinchas stated, 'We have a picture of a global economy that is growing at - it's not outsized growth rates but it's quite resilient, quite robust.'
'In a sense the global economy has been shaking off the trade disruptions of 2025, and it's coming out ahead of what we were expecting.'
While the effects of Trump's tariffs have been noted as slowing global activity, Gourinchas mentioned other factors have compensated for this decline.
The IMF's report indicates that recent growth has been bolstered by technological investments, particularly in AI.
However, it warned that the outlook remains 'tilted to the downside', emphasizing that overly optimistic expectations regarding AI might lead to sharp market corrections.
Even minor corrections could affect consumer behavior as wealth gains linked to share price increases make individuals cut back on consumption, influencing businesses' investment decisions.
Furthermore, the IMF noted that rising trade tensions could exacerbate uncertainties, severely affecting the global economy.
In addition to AI risks, the IMF underscored the critical nature of central bank independence, stating it is essential to avoid fiscal dominance and ensure effective economic policies.
The UK economy's growth rate is projected to be the fastest in the G7 among major economies, while the European landscape faces uncertainties amid Trump's recent tariff threats.
