AI Investment Boom Could Boost Global Growth
Update: 2025-12-02
Description
The global economy is projected to slow down next year due to higher tariffs, but theres potential for stronger growth if AI investment expands beyond its current reach. The OECD forecasts a slight dip in US growth to 1.7% next year, but a potential rebound by 2027. Global growth is expected to slow to 2.9% next year, with trade barriers posing a risk to supply chains and output. The OECD estimates a 14% tariff rate, up from 2.5% at the start of 2025, but lower than the 19.5% rate estimated in August. AI investment has been a major growth driver, and if it spreads to other major economies, global growth could be stronger than expected. However, rising government debt could offset these gains.
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