IMF World Economic Outlook: Deficits, AI Demand Revision, LatAm Cuts
The IMF warns top economies face their largest budget deficits since Covid, revises AI demand expectations downward, and trims growth forecasts across Latin America including Brazil, Argentina, and Mexico.
What we know
@FT reports the IMF warning that top economies are heading for their biggest budget deficits since Covid. IMF chief economist Tenreyro acknowledged that while AI significantly boosted global trade between 2023–2025, changing views on AI are now resulting in a downward demand revision. On LatAm, the IMF cut Brazil's 2026 growth to 2.2%, Argentina's to 2.1%, and the region overall to 2.3%.
Sources
“Top economies heading for biggest budget deficits since Covid, IMF warns”
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