IMF Chief Warns Energy Costs, AI Demand Reshape Global Economy
Speaking in Singapore ahead of the IMF’s annual meetings in Thailand, Georgieva said policymakers face several major pressures, including the rapid expansion of AI, elevated energy prices and mounting government debt.
She warned that global public debt is on track to surpass the equivalent of 100% of global gross domestic product, a level that would represent the highest point since the end of World War II.
Advanced economies are particularly exposed to the debt challenge, with several carrying exceptionally large government debt burdens, Georgieva said.
At the same time, she described the energy and technology trends as opposing forces affecting economic activity. Higher energy costs are creating pressure on the global economy, while strong investment and demand related to AI are providing a countervailing boost.
Oil prices have remained near $100 per barrel, with transportation expenses and other risks contributing to the elevated costs, Georgieva said.
She also highlighted continued disruptions to natural gas supplies from the Gulf, pointing to security threats affecting shipping through the Strait of Hormuz.
Meanwhile, the rapid expansion of AI is generating significant demand for technology products. Georgieva said AI hardware and related goods now represent more than 10% of global merchandise trade.
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