India, Jan. 20 -- The International Monetary Fund issued a warning over concerns about an artificial intelligence bubble while trade and geopolitical tensions remain a dawning risk to the world economy.

While it issued the warning, it also raised its outlook for global growth in 2026. The lender aims global growth of 3.3% this year, which slightly shot up from the 3.1% predicted in October, according to the World Economic Outlook report, that was published on Monday.

The estimate for 2027 was unchanged at 3.2%.

The IMF said that global inflation would fall, but the US inflation would gradually return to target, adding that the key downside risks include reevaluation of technology expectations and escalation of geopolitical tensions.

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