The AI boom is currently papering over the strain from higher inflation and tight policy, it said, adding the Middle East conflict is a top concern posing downside risks to growth.
A fresh flare-up in the Middle East or a drawn-out blockade of the Strait of Hormuz would send oil prices surging and force countries to drain their reserves.That would lift inflation, hurt growth, and worsen the trade-offs facing central banks, Moody’s Analytics said.