Bangkok:The International Monetary Fund (IMF) has raised concerns about the diminishing resilience of the global economy in the face of repeated shocks, particularly affecting emerging and developing economies. This warning was delivered by IMF Managing Director Kristalina Georgieva during the IMF/World Bank Group Annual Meetings in Bangkok.
According to Ghana News Agency, the IMF's latest Global Policy Agenda projects global economic growth at 3.1 percent for 2026, consistent with the April forecast but below the 3.4 percent growth achieved in 2025. The Fund attributes this outlook to conflicting pressures from a negative energy supply shock and a positive demand shock driven by advancements in artificial intelligence (AI).
The Global Policy Agenda highlights heightened uncertainty and significant vulnerabilities, urging policymakers to address these issues. Ms. Georgieva noted that while the global economy has shown resilience to frequent shocks, this resilience is nearing its limits. She emphasized the depletion of energy and fiscal buffers and the impact of persistent inflation on rising interest rates and debt-servicing pressures, especially in countries with increased debt levels due to repeated shocks.
The situation is particularly severe in Sub-Saharan Africa, where many economies face challenges such as currency depreciation and restricted access to external financing. Higher benchmark yields are exacerbating debt servicing costs in emerging markets and low-income countries, adding to their vulnerability.
The IMF chief stressed the importance of improving policy frameworks and strengthening institutions to enhance resilience. She urged governments to focus on revenue mobilization, spending rationalization, and improving public financial management. Ms. Georgieva also highlighted the need to protect the most vulnerable populations by providing targeted support amid rising energy and food prices.
On the topic of artificial intelligence, she acknowledged its potential for significant productivity gains but cautioned against overestimating short-term benefits. She warned of the risks posed by disorderly market corrections and AI-enabled cyberattacks, which could threaten financial systems.
Ms. Georgieva concluded by advocating for coordinated action to rebuild fiscal buffers, accelerate the energy transition, and ensure debt sustainability. The Fund has undertaken policy reforms to improve risk identification, tailor interventions to specific country needs, and support low-income member countries during rapid global changes.