IMF drops blunt warning on US economy
thestreet.com • • business
Key Points:
- The IMF forecasts U.S. GDP growth of 2.4% in 2026 and 2% in 2027, leading developed economies, but warns this growth heavily depends on the tech sector, particularly AI-driven companies.
- The U.S. stock market is highly concentrated, with the "Magnificent 7" stocks making up nearly a third of the S&P 500’s weight and generating a disproportionate share of returns, raising concerns about market vulnerability.
- The IMF highlights that massive AI investments and soaring tech valuations mask broader economic weaknesses, leaving the U.S. economy with a thin margin for error if AI productivity and profits fall short.
- Globally, the IMF raised growth forecasts for 2026 and
