IMF chief highlights inflation and AI risks at Bangkok meetings
Kristalina Georgieva said debt repayments were taking a larger share of poorer countries’ revenue, while AI offered both growth opportunities and risks.
International Monetary Fund chief Kristalina Georgieva said global policymakers meeting in Bangkok saw reasons for confidence in economic growth but remained concerned about inflation, debt and artificial intelligence.
As the annual meetings drew to a close, Georgieva pointed to the global economy’s resilience, Asia’s dynamism and AI’s potential as grounds for optimism. Speaking alongside Saudi Finance Minister Mohammed al-Jadaan, she also identified wars and climate risks among the threats facing the outlook.
The IMF warned during the meetings that heavy debt burdens and higher bond yields in advanced economies were making financing conditions tighter. Central banks meanwhile needed to concentrate on reducing inflation, likely through interest-rate increases.
Energy prices have risen sharply since the United States and Israel began their war on Iran in late February. Iranian retaliation against Washington’s Gulf allies has restricted oil and gas supplies. The IMF said low-income countries importing oil were particularly exposed, without the AI investment boom supporting growth in many advanced economies.
Georgieva said debt repayments had increased from 8 to 14 per cent of government revenue in low-income countries in recent years. She urged spending priorities that support growth and vulnerable people, and said the IMF had a responsibility to assist with debt restructuring where needed, domestic resource mobilisation, international financing and conditions for private investment.
On AI, Georgieva cautioned against relying on a single engine of growth. Policymakers also debated safeguards for advanced models following security incidents involving autonomous AI agents. She said cooperation among technology companies, governments and other participants in Bangkok had impressed her.
