IMF Lifts Growth Forecast, Flags AI and Debt Risks — SkimNews

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- IMF raised its forecast for world growth this year while warning of risks from the AI boom and rising debt
- IMF said a potential AI share crash could threaten global financial stability and warned bond yields could see a 'disorderly' spike as debt and inflation risks worsen
Why it matters: The IMF is upgrading its growth outlook while simultaneously warning that two of its biggest tail risks — frothy AI valuations and swelling sovereign debt — could unravel that growth if they crack. A disorderly bond yield spike would hit debt-laden economies and emerging markets hardest, while an AI correction could transmit losses across the financial system.
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