IMF Chief Georgieva Warns Global Economy Approaching Resilience Limits Amid AI Boom and Middle East Tensions

Key summary

Kristalina Georgieva, Managing Director of the IMF, announced a new Global Policy Agenda at the annual IMF and World Bank meeting in Bangkok. While the global economy is projected to grow by approximately 3.1% in 2026, this figure reflects a slowdown from last year's 3.4% growth due to conflicting pressures. Georgieva highlights that Middle East conflicts are driving energy scarcity and higher prices, whereas AI enthusiasm fuels massive investment in chips, servers, and data centers. She warns that developed nations face high bond yields increasing borrowing costs, while emerging markets like Thailand suffer from a rising global interest rate base despite stable spreads.