India, July 17 -- 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, court...