The IMF forecasts slower global economic growth in the coming years, despite some brighter spots compared to earlier projections. The organization acknowledges that tariff threats have had a less damaging impact than initially feared. They remain skeptical that the AI boom will fully offset economic challenges, particularly in the short term. The IMF highlights a "tariff shock" further hindering already weak growth, with the US showing weaker growth and higher inflation than expected. Global growth is projected at 3.2% this year and 3.1% in 2026, an improvement over earlier estimates but still lower than a year ago. US growth is expected to slow significantly in 2025. AI-related investments and lower US tariffs are contributing to slightly better-than-expected growth. The IMF warns of potential risks from the AI investment surge, including a possible market repricing. They suggest that AI's productivity effects could boost growth, but trade tensions might undermine them. The IMF believes reduced tariffs and AI combined could raise global output by approximately 1% in the near future. Ongoing trade tensions, particularly between the US and China, pose a significant risk to global economic stability.