Global Economic Outlook 2027: AI, Oil Prices and Recession Risks

The world economy faces a dangerous period with a combination of risks including stubborn inflation, a weak Chinese economy, and the Middle East war pushing oil prices above $117 a barrel. Wall Street questions whether massive AI investments will generate sufficient returns, while the IMF warns that interconnected AI financing could spread financial stress. A serious downturn would be triggered if declining asset prices cause defaults and reduce lending.