By Stephen Simon
The International Monetary Fund (IMF) has warned that rising public debt, elevated energy prices and the rapid expansion of artificial intelligence could pose significant threats to global economic stability.
IMF Managing Director Kristalina Georgieva issued the warning ahead of the IMF and World Bank annual meetings in Bangkok, Thailand, urging governments to take decisive action to address mounting economic pressures.
According to Georgieva, conflicts in the Middle East and Ukraine are contributing to energy-market uncertainty, while disruptions to supply chains and rising energy costs could intensify inflationary pressures across countries.
She also expressed concern about the growing debt burden facing governments, noting that high borrowing costs could limit their ability to finance public services and respond to future economic shocks.
Artificial intelligence presents another challenge. Although increased investment in AI could improve productivity and support economic growth, the IMF chief warned that excessive market expectations and delays in realising the technology’s benefits could expose financial markets to instability.
The expansion of AI is also raising concerns about employment, inequality, cybersecurity and growing demand for energy. Georgieva stressed the importance of appropriate regulation and investment in skills to help workers and businesses adapt to technological changes.
She urged governments to adopt credible fiscal policies, strengthen energy security and maintain effective economic regulations. Countries must also ensure that technological progress produces wider benefits rather than concentrating wealth and opportunities in a limited number of sectors.
The warning comes as policymakers face the difficult task of supporting economic growth while controlling inflation, managing public finances and responding to geopolitical uncertainties
