The Fund now expects global output to expand by 3.3% this year, pointing to more flexible supply chains, strong investment in artificial intelligence, and fiscal stimulus in major economies such as China and Germany. However, the IMF warned that growth remains concentrated in a narrow range of sectors and regions, while rising public and private debt poses longer-term risks to global stability. It added that escalating tariff tensions could still weigh on the outlook if they intensify or become more prolonged.