IMF Chief Warns Energy and Debt Risks Threaten Growth

IMF Managing Director Kristalina Georgieva warned that high energy prices, soaring public debt and AI investment risks threaten global economic growth. She urged governments to implement decisive fiscal and monetary policy measures to address these challenges.

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FILE PHOTO: A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., U.S., November 24, 2024. REUTERS/Benoit Tessier/File Photo

Global economic growth faces severe threats from persistently high energy prices, record public debt, and the risks of an artificial intelligence investment boom, IMF Managing Director Kristalina Georgieva warned on Wednesday morning. Speaking ahead of next week's annual meetings in Bangkok, Georgieva noted that the world economy is being squeezed between negative energy supply shocks and inflationary AI demand. The dual pressures are unevenly distributed worldwide, leaving war-torn regions facing the steepest growth downgrades.

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