IMF Warns AI Bubble Could Trigger 20% US Stock Market Crash, Raises India’s FY27 Growth Forecast
The IMF has raised its global growth forecast for 2026 to 3.1% and India’s growth projection to 7% for both FY27 and FY28. Strong domestic demand and AI investments are supporting the outlook despite geopolitical tensions and elevated oil prices. However, the IMF has warned that an AI investment boom could trigger financial instability if expected productivity gains fail to materialise. In a downside scenario, US stocks could plunge 20%, while global growth could weaken by 2028. The fund also flags declining oil reserves and uncertainty surrounding the Strait of Hormuz.
#IMF #IndiaEconomy #AIGrowth #GlobalEconomy #StockMarket #EconomicOutlook
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