Riding on AI boom

LAST week, the International Monetary Fund (IMF), in its July 2026 World Economic Outlook (WEO) update, lowered its global gross domestic product (GDP) growth forecast for this year to 3%, from 3.1% and 3.3% estimated three and six months ago, respectively.

According to the IMF, the main reason for the slower growth compared with its forecasts three and six months ago is the offsetting impact of the war in the Middle East on accelerated demand-driven momentum in the global technology cycle, thanks to advances in artificial intelligence (AI).