Global investment in artificial intelligence has helped stabilize the world economy amid escalating U.S. trade wars, an IMF official said Monday. Speaking at Abu Dhabi Finance Week, Jihad Azour, director of the IMF’s Middle East and Central Asia Department, said rising tariffs produced far less inflation than expected because global trade adjusted quickly and AI spending surged.
Azour noted that heavy investment — particularly in the United States — strengthened overall economic activity and muted tariff shocks.
The IMF now forecasts 3.2% global growth in 2025 and 3.1% in 2026, higher than initial projections issued when President Donald Trump launched new trade measures.
IMF regional director Jihad Azour says the UAE and Saudi Arabia are set to become major global players in AI, calling their multibillion-dollar investments a 'game changer' for the non-oil economy pic.twitter.com/lXAXeVphe2
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Worldwide AI spending is expected to reach $1.5 trillion in 2025 and exceed $2 trillion in 2026, boosted by major national projects such as the U.S. “Stargate” initiative and China’s “Eastern Data, Western Computing” strategy.
Azour warned, however, of a widening gap between tech valuations and real asset prices, cautioning that global uncertainty could still shave up to 2% of GDP over the next two years.
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TIPP Staff
TIPP Staff
