IMF-World Bank meetings: Policymakers take on energy shock, rising debt

Finance ministers and central bankers are gathering in Bangkok from Monday to Saturday for the annual meetings of the IMF and World Bank, Business Recorder reported. Officials will weigh hard choices as the global economy faces an energy supply shock linked to the US war on Iran, rising debt and a boom in artificial intelligence. The IMF will release its global forecast on Tuesday, with regional outlooks published through the week.

IMF chief Kristalina Georgieva said AI-driven demand is keeping world growth at three percent even as the energy supply shock weighs on activity. World Bank President Ajay Banga advised developing countries to build small AI applications for health, education and agriculture instead of competing on frontier models and large data centres. Critics argue the IMF's call to cut subsidies is not workable for low-income countries, while the UNDP warned that the combined shocks may push millions more toward poverty.

Advanced economies have handled the energy price spike better, but the inflation it fuelled is spreading and central banks have raised interest rates. Bond yield increases are expected to dominate the G20 finance ministers' meeting, which US Treasury Secretary Scott Bessent will miss. A department official said on Friday that his absence is due to domestic engagements.