IMF Managing Director Kristalina Georgieva has called on countries, both rich and poor, to take faster action to reduce debt and tackle growing inequality. Speaking in Singapore ahead of the IMF-World Bank meetings in Bangkok next week, she said governments have the tools to address economic challenges but need to take necessary policy decisions without further delay.
Georgieva said conflicts in the Middle East and Ukraine have affected global economic well-being, while high debt is putting pressure on both advanced and low-income economies. She also highlighted risks from the rapid expansion of artificial intelligence, including heavy investment in data centres, rising energy demand and potential financial shocks if AI-related earnings fall short of expectations.
She said AI is becoming a major driver of countries’ economic fortunes, but its benefits are not reaching all countries equally. Georgieva urged governments to control public spending and raise borrowing costs where necessary to contain inflation, while protecting vulnerable sections. She also called for better AI regulation, worker training, more flexible labour markets, support for entrepreneurship and improved energy security.
