IMF Chief Warns Global Economy Is Nearing Its Limits Amid 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.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
