WASHINGTON (AP) – The International Monetary Fund (IMF) released a report indicating that the global economy is demonstrating unexpected resilience in the face of President Donald Trump’s protectionist trade policies. The IMF attributes this robustness in part to a significant increase in investment in artificial intelligence across North America and Asia.

According to the 191-nation lending organization, global growth is projected to reach 3.3% for the current year, matching the growth forecast for 2025, and marking an increase from the 3.1% anticipated for 2026 in their previous October report. The IMF highlighted that the world economy continues to show notable resilience despite significant disruptions in trade led by the United States and a climate of heightened uncertainty.

In terms of specific economies, the United States is expected to experience a notable expansion of 2.4% this year. This projection represents an upgrade from the IMF’s forecast in October, as well as an increase compared to the growth rate anticipated for 2025, both previously set at 2.1%. The U.S. is boosted by the strongest pace of technology investment observed since 2001, which is driving economic growth.

China, recognized as the world’s second-largest economy, is forecasted to see growth of 4.5%, which is an improvement from the 4.2% growth predicted in October. The IMF credits this positive outlook to a trade truce with the United States, which has led to reduced tariffs on Chinese exports. This change is expected to facilitate trade and enhance economic performance in China.

Additionally, India has overtaken China to become the fastest-growing major economy in the world. However, its growth rate is expected to decelerate from 7.3% in the previous year to a still-healthy 6.4% in 2026. This slowdown is partly attributed to the exceptionally strong economic performance in the second half of the previous year, which has created a comparative decline in growth expectations.

The IMF’s report underscores the dynamics of the current global economic landscape and highlights how investment in technology is becoming a critical engine for growth. Despite ongoing trade tensions and uncertainties, nations are continuing to adapt and invest in future technological advancements that could sustain their economic trajectories.

Overall, the projections provided by the IMF suggest a cautiously optimistic outlook for the global economy. The anticipated growth rates reflect not only the resilience of major economies but also the potential benefits arising from innovation and investment in new technologies, such as artificial intelligence.