IMF Chief Warns Global Economy Is Nearing Its Limits Amid Repeated Shocks
(MENAFN) International Monetary Fund Managing Director Kristalina Georgieva has called on governments to take immediate steps to strengthen their public finances, warning that the global economy is approaching the limits of its ability to withstand repeated shocks.
Speaking Wednesday at a press briefing during the IMF-World Bank annual meetings in Bangkok, Georgieva said countries were running down their energy and fiscal reserves, while persistent inflation and higher interest rates were increasing the burden of debt repayments.
Global economic growth is expected to reach approximately 3.1% in 2026, matching the IMF’s April projection but falling short of the 3.4% recorded last year, she said.
The economic outlook reflects competing pressures. Conflict in the Middle East is disrupting energy supplies, while growing investment and demand associated with artificial intelligence are helping sustain economic activity.
Countries closely connected to AI supply chains, including Thailand, Malaysia, South Korea and Singapore, have generally demonstrated stronger economic performance. Energy-exporting nations that are not directly affected by conflicts have also fared comparatively well.
By contrast, low-income economies and fragile states face greater challenges, particularly those that rely on imported energy and have limited access to the benefits of the expanding artificial intelligence industry.
Speaking Wednesday at a press briefing during the IMF-World Bank annual meetings in Bangkok, Georgieva said countries were running down their energy and fiscal reserves, while persistent inflation and higher interest rates were increasing the burden of debt repayments.
Global economic growth is expected to reach approximately 3.1% in 2026, matching the IMF’s April projection but falling short of the 3.4% recorded last year, she said.
The economic outlook reflects competing pressures. Conflict in the Middle East is disrupting energy supplies, while growing investment and demand associated with artificial intelligence are helping sustain economic activity.
Countries closely connected to AI supply chains, including Thailand, Malaysia, South Korea and Singapore, have generally demonstrated stronger economic performance. Energy-exporting nations that are not directly affected by conflicts have also fared comparatively well.
By contrast, low-income economies and fragile states face greater challenges, particularly those that rely on imported energy and have limited access to the benefits of the expanding artificial intelligence industry.
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