Tech-driven global growth vulnerable to shocks, IMF warns

Global Growth in 2025: A Technology-Driven Surge, says IMF

The International Monetary Fund (IMF) has highlighted the significant role of technology investment in propelling the resilient global growth observed in 2025. However, the fund also indicated potential vulnerabilities if the anticipated productivity gains are not fully realized.

IMF’s World Economic Outlook Update

In its latest revision of the World Economic Outlook (WEO), the IMF observed that the global economy has demonstrated remarkable resilience. The WEO, published on January 19, projected a slightly increased global growth of 3.3% in 2026, a modest upward adjustment from the forecast published in October.

The Role and Risks of Technology Investment in Global Growth

While technology investment has been a significant driver of global growth, the IMF warns of possible derailments if expected productivity gains fail to materialize. This underscores the intricate balance between the promise of technology and the realities of economic growth.

Investment in technology has the potential to catalyze economic growth by enhancing productivity, fostering innovation, and creating new markets. However, the realization of these benefits is contingent on a variety of factors, including the appropriate implementation of technology, the development of supportive regulatory frameworks, and the ability of economies to adapt to technological changes.

Striking a Balance: Technology, Productivity, and Economic Growth

The IMF’s cautionary note serves as a reminder of the complex interplay between technology, productivity, and economic growth. While technology offers vast potential for driving economic growth, the realization of this potential requires careful management and strategic planning.

As we move further into the digital age, the role of technology in shaping global economic trends will become increasingly important. Therefore, it is crucial for policymakers and businesses to understand the potential benefits and risks associated with technology investment and to develop strategies that maximize the positive impacts of technology on economic growth while mitigating potential risks.

Source: Central Banking