New Delhi, June 11 -- Massive investments in artificial intelligence (AI), defence and energy security are set to reshape the global economic landscape over the next five years, creating a wide range of possible outcomes for growth, inflation and asset returns, according to a report by global investment manager PIMCO.

In its latest Secular Outlook 2026 titled "Rupture and Resilience", PIMCO said the world economy is entering a period marked by geopolitical fragmentation, fiscal constraints and an unprecedented capital expenditure cycle driven by AI infrastructure development.

The report noted that the combination of AI investments, rising defence spending and energy security initiatives could significantly alter global growth dynamics. ...