IMF Highlights Global Financial System Risks Amid AI Correction Concerns and Cyber Threats

The IMF's latest Global Financial Stability Report identifies elevated risks to the financial system, including potential market corrections linked to AI and significant cyber threats. It also notes that hedge fund leverage could strain market liquidity. Despite these warnings, the IMF projects global growth to slow to 3.1% in 2026 before rebounding, urging governments to rebuild fiscal buffers and address high sovereign debt.