IMF Managing Director Kristalina Georgieva said on Saturday that this week’s annual meetings of the IMF and World Bank in Bangkok had been marked by a mix of optimism and concern.
She said the optimism reflected the resilience of the global economy, the promise of artificial intelligence and Asia’s dynamism.
But she added that AI was also seen as a source of concern, alongside inflation, high debt levels, wars and climate risks.
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Throughout the week, the IMF warned that heavy debt burdens and soaring bond yields were tightening financial conditions as central banks remained focused on bringing down inflation, likely through further interest rate rises.
Global energy prices have risen sharply since the outbreak of war in the Middle East in late February, the IMF said, and the increase has spread worldwide, fuelling inflation.
According to the Fund, the countries most exposed to this shock are low-income oil-importing nations that are not benefiting from the AI boom, which is supporting growth in many advanced economies.
“People around the world, but especially in the poorest countries, do not like inflation. Inflation is like a tax on the poor,” Georgieva said.
She said those countries needed to set budget priorities that supported growth while protecting the most vulnerable.
Georgieva said debt repayments as a share of government revenue in low-income countries had risen from 8% to 14% in recent years.
She said the IMF had a responsibility to help those countries restructure debt when needed, strengthen domestic resource mobilisation, attract international financing and create the conditions for private investment.
“When we do our best, it translates into better lives for people,” she said.
Beyond the economic outlook, AI and the need to regulate the most advanced models were among the main themes of the meetings.
Georgieva warned against relying too heavily on the AI boom, saying that depending on a single engine of growth was like “standing on one leg”.
She also said she was impressed by the spirit of co-operation seen in Bangkok between AI companies and governments on regulation.
