| The global economy is continuing to hold up, but growth remains uneven, according to the International Monetary Fund (IMF) | The IMF explores the risks and opportunities surrounding AI – a market correction or the ability to ‘lift growth’ | For investors, it’s important to understand where valuations, risks and opportunities sit as the AI story continues to evolve |
The global economy is continuing to hold up, but growth remains uneven, according to the International Monetary Fund (IMF). Their global economic outlook, entitled ‘Global economy in crosscurrents of war and technology,’ highlights how momentum from technology is helping to offset the drag from the conflict in the Middle East, which continues to weigh on energy importers and more vulnerable economies.
At the same time, AI-driven demand is supporting countries integrated into the global technology value chain, as businesses invest in the infrastructure needed to support the technology. The IMF explores the risks and opportunities surrounding AI, with Petya Koeva Brooks, Deputy Director of Research, highlighting two possible paths – on the downside, a market correction could follow a reassessment of AI profitability; on the upside, ‘faster AI adoption could lift growth.’
Looking ahead, the consensus is that the AI ‘build-out’ is accelerating – AI requires data centres, semiconductors, digital infrastructure and energy systems. For investors, it’s important to understand where valuations, risks and opportunities sit as the AI story continues to evolve.
If it’s been a while since you reviewed your investments, now could be a good time to get in touch and discuss whether your portfolio remains well positioned for the changing economic and investment landscape.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.