IMF Managing Director Kristalina Georgieva urged governments on October 7 to tackle risks from expensive energy, heavy public debt and the artificial intelligence boom. Speaking in Singapore before next week’s meetings in Bangkok, she called for fiscal and monetary action, Reuters reported.
Georgieva described two competing forces: disrupted energy supplies from Middle East conflicts and stronger demand driven by AI investment. Their effects differ sharply across countries, with many missing out on the technology boom, according to Reuters.
Bloomberg reported that she expects pressure on commodity supplies from conflicts in the Middle East and Ukraine to persist into 2027. Rising bond yields are also straining government budgets, particularly in advanced economies that have accumulated excessive debt, she said.
AI brings another risk alongside its potential gains. According to AP, Georgieva warned that borrowing by major AI infrastructure companies and extensive global exposure to US shares could spread the damage if earnings disappoint. Benefits take time to follow investment.
AP reported that she urged governments to restrain spending and increase borrowing costs when needed to contain inflation, while protecting vulnerable people. Her priorities also included AI regulation, worker training, more flexible labor markets, entrepreneurship and energy security.
The IMF’s calendar places its joint annual meetings with the World Bank in Bangkok on October 12–18. New growth forecasts are due during the gathering. Reuters said Georgieva did not indicate whether the July projection of 3.0% global growth for 2026 would change; she said war-hit economies face the largest downgrades.
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