SINGAPORE: The International Monetary Fund (IMF) has warned that global economies face three major crosscurrents with the rapid arrival of artificial intelligence (AI), persistently high energy prices, and record levels of public debt.
IMF managing director Kristalina Georgieva said the global economy is also being pulled in two opposite directions – a negative energy supply shock and a positive demand shock from AI.
She said higher energy prices are pushing up inflation, policy rates and benchmark yield curves.
“This takes us to the third major factor affecting the global economy today: excessive fiscal deficits, record levels of public debt and high debt-servicing costs.
“Global public debt is nearing its highest levels since the end of World War II and is on track to exceed 100% of global gross domestic product,” she said in a presentation entitled Outlook for The Global Economy and Policy Priorities yesterday. The speech was made ahead of the 2026 IMF Annual Meeting in Thailand next week. — Bernama
