Moody's Analytics predicts AI-fueled K-shaped growth for world economy

Moody's Analytics' Global Economy Outlook says the artificial‑intelligence boom is creating a K‑shaped global economy, with some countries and industries accelerating while others lag. The agency projects world growth to slow to 2.5 % in 2026 and rise modestly to 2.8 % in 2027. It notes that AI has spurred data‑centre investment, boosted exports from Asia’s tech‑heavy economies and lifted equity valuations worldwide. However, Moody's warns that geopolitical turmoil – from Middle‑East conflicts to friction with U.S. trading partners – along with stretched asset prices and market volatility could push the outlook from slow growth to recession. “The global economy is running at two different speeds. In some segments, growth is holding up better than expected, courtesy of the AI boom,” the agency said.