The global economy is slowing — growth is projected to ease from 3.3% in 2025 to around 3.0% in 2026 — yet it keeps expanding, supported in large part by the artificial intelligence investment boom.
A narrow engine
Spending on data centres, chips and AI infrastructure has become a major driver of activity, even as high energy prices, trade tensions and policy uncertainty weigh on the broader picture. That concentration is a strength today and a vulnerability tomorrow.
What to watch
If the AI build-out delivers lasting productivity gains, it could justify the spending and lift growth durably. If it overshoots, a pullback would remove a key support at a delicate moment. Either way, the economy's reliance on a single theme deserves close attention.
This is an analysis piece. Sources: PIIE, OECD.