Global economy in tug-of-war between oil shock and AI boom: IMF chief

The global economy is weathering an oil shock better than feared. An investment boom in artificial intelligence is now a growth engine. Drawdowns of oil reserves and non-Gulf supply increases helped mitigate the energy shock. Risks remain tilted to the downside, with fiscal pressures and stalled disinflation causing worry. Developing nations face risks of falling behind in AI and commodity supply disruptions.

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