The International Monetary Fund (IMF) has warned that the global economy is facing serious pressure from rising public debt, high energy prices and the rapid growth of artificial intelligence (AI). IMF Managing Director Kristalina Georgieva gave the warning ahead of next week’s IMF and World Bank meetings in Bangkok.
Georgieva said global public debt is at its highest level since World War II and is expected to exceed 100% of global economic output before 2030. She urged governments, especially countries with high debt, to reduce excessive spending and strengthen their finances.
She also warned that the rapid expansion of AI could create economic problems if companies fail to make enough profit from their huge investments. A major fall in AI-related investments could potentially cause wider financial problems.
However, the IMF chief said AI is not only a threat. If properly managed, AI could increase global economic growth by about 0.5 percentage points each year. She encouraged governments to invest in workers’ skills and create regulations that reduce the risks associated with the technology.
High energy prices are another concern, with oil prices around $100 per barrel amid continuing Middle East tensions. Higher energy costs can increase the price of transportation, food and other goods around the world.
