IMF chief flags ‘optimism’, ‘worry’ after Bangkok meetings

According to Business Recorder, IMF chief Kristalina Georgieva told a Bangkok press briefing on Saturday that this year's Annual Meetings had a mix of hope and concern about the world economy as they closed. Speaking alongside Saudi Finance Minister Mohammed al-Jadaan, she cited resilient growth, the potential of AI and Asia's momentum as reasons for hope, while naming inflation, heavy debt, wars and climate risks as sources of unease.

Throughout the week the Fund cautioned that heavy borrowing and climbing bond yields in wealthy nations are squeezing financial conditions while central banks work to lower inflation, probably by lifting rates. Energy costs have climbed since the US and Israel opened their war on Iran in late February. Tehran's retaliation against Washington's Gulf partners has disrupted oil and gas flows, and low-income oil importers that lack exposure to the AI investment boom are the most exposed, according to the Fund.

She said debt repayments now take 14 percent of government revenue in low-income countries, up from 8 percent in recent years. She added that the Fund has a duty to help with debt restructuring, domestic resource mobilisation, international finance and private investment. On AI, she said relying on one growth driver was like standing on one leg, and she praised cooperation between AI firms, governments and other stakeholders in Bangkok.