Global Economy

AI boom fuels 'K'-shaped growth, widens global divide: Moody's Analytics

The global economy is witnessing 'K' shaped growth where the artificial intelligence boom pushes some countries and industries ahead, leaving others behind, Moody's Analytics said on Thursday. In its Global Economy Outlook, Moody's Analytics said it expects global growth to slow to 2.5 per cent in 2026 and pick up to just 2.8 per cent in 2027. It said that booming demand for artificial intelligence has saved the global economy from a sharper slowdown, but geopolitical risks, stretched asset valuations, and volatility in financial markets could easily flip 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. .. But economies and industries less plugged into the AI boom have struggled," Moody's Analytics said. The agency said AI boom has driven a surge in data centre investment, exports in Asia's tech-heavy economies, and stock market valuations across t

IEA chief warns prolonged Hormuz disruption could hit global economy

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Chinese mercantilism has dealt the global economy the mother of all shocks

Chinese mercantilism has been more globally consequential than any other economic shock or policy choice in reshaping the world this millennium

A $3.2 trillion global dealmaking frenzy is spurred by AI economy

This year's boom includes the most spent on global deal-making in a six-month period in a decade, but questions persist about whether it can continue

Rising debt, AI boom and financial fragilities raise global risks: BIS

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EMs in the oil shock: Policymakers are going into an examination hall

The 2026 oil shock is testing emerging economies, with fuel pricing, exchange-rate flexibility and inflation control set to determine growth outcomes

Best of BS Opinion: Vodafone must quickly raise capital, improve services

From Vodafone Idea's financial struggles and Bengal's political tensions to oil market reactions during the Iran conflict, here are the top opinions of the day

Iran again tightens grip on shipping in Strait of Hormuz with fresh attacks

Traffic in the strait has all but halted as Iran renews its attacks, striking two vessels on Wednesday; more than 300 ships linked to Iran have passed through the strait since the war began

West Asia conflict revives stagflation dangers for global economy

Whether the twin blows affecting growth and inflation seen in purchasing manager indexes after the first month of the Iran conflict intensified during month two will be a key focus

Beyond self-reliance: Why interdependence must shape India's future

An immediate instinct is to turn inwards and seek self-reliance. But the world, and certainly India, is too dependent on other countries for that to be an effective strategy

Policy challenge: Oil shocks and monsoon risks cloud India's outlook

The brunt of the war and persistent geopolitical tensions could vary across countries, with economies dependent on imported energy likely to face a greater impact

US blockade of Iran ports: Impact on India & global oil markets explained | US-Iran war

Hours after ceasefire talks between the US and Iran failed to make progress, US President Donald Trump announced a naval blockade in the Strait of Hormuz.

India vs global shocks: Why RBI Governor Sanjay Malhotra says 'we can manage'

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World Bank chief warns of looming jobs crisis even after Iran war ends

World Bank chief said governments must balance immediate crises with long-term priorities including job creation, clean water access and electrification

The Covid lessons: West Asia conflict can also be used to usher in reforms

West Asia conflict may disrupt Budget 2026-27 projections, squeezing revenues and raising subsidies, prompting fiscal adjustments and potential reforms, echoing lessons from the Covid-era shock

West Asia war has evolved into 'systemic tremor': FM Nirmala Sitharaman

FM Nirmala Sitharaman says current year even 'more challenging' but India has enough fiscal space

Best of BS Opinion: Iran conflict could trigger prolonged bear market

From US foreign policy risks and India's labour data changes to bear market fears and FCRA concerns, today's Best of BS Opinion brings together key insights shaping global and domestic debates

Dire straits: Prolonged war could alter the global security architecture

Escalating US-Iran conflict and oil disruptions threaten global stability, while shifting alliances signal a weakening of America's geopolitical influence

War in West Asia risks triggering a new era of oil-induced stagflation

The war could result in huge geoeconomic shifts. The big immediate winner is Russia, benefitting from higher oil prices and the removal of sanctions

Fractured future: MC14 exposes the limitations of WTO amid deep divisions

The larger takeaway from MC14 is the fragmentation of global trade governance