IMF chief warns of energy, debt and AI risks to growth

International Monetary Fund Managing Director Kristalina Georgieva warned Wednesday that energy disruptions, heavy public debt and risks tied to the artificial intelligence investment boom could weaken global growth and keep inflation elevated. She urged governments to strengthen fiscal and monetary policies as the IMF prepares to release updated economic forecasts at annual meetings in Bangkok next week. Georgieva described the global economy as facing two opposing forces: a negative energy supply shock stemming from conflict in the Middle East and a positive demand shock from AI investment. Both, she said, are contributing to inflation, while their effects vary across countries. War-affected economies face immediate damage, and some countries risk missing out on gains from AI. Oil prices remain around $100 a barrel, Georgieva said. She also pointed to reduced refining capacity, restricted natural gas supplies linked to threats to liquefied natural gas shipments through the Strait of Hormuz, and higher winter heating demand. Even if the Gulf conflict ends soon, she warned, energy prices could remain high for some time.