Baku:The International Monetary Fund (IMF) has raised concerns about the mounting pressure on the global economy, citing high inflation and debt as key challenges. During the IMF-World Bank Annual Meetings 2026, Kristalina Georgieva, the Managing Director of the IMF, discussed the current economic landscape, highlighting issues such as the conflict in the Middle East, rising public debt, and the impact of artificial intelligence (AI) on economic transformation.

According to Thai News Agency, the IMF Managing Director emphasized that while the global economy remains resilient, it is nearing its limits due to ongoing depletion of energy and fiscal reserves, along with persistent inflation that drives up interest rates and debt repayment pressures. These challenges are particularly acute for countries with high debt levels from repeated crises.

The IMF projects a global economic expansion of approximately 3.1% in 2026, consistent with earlier estimates but slower than the 3.4% growth anticipated for 2025. The growth rate reflects disparities across countries, with those integrated into AI supply chains, especially in Asia, expected to benefit more than others. Meanwhile, low-income countries and those impacted by conflicts or reliant on energy imports face significant hurdles.

The rise in government bond yields in developed economies, reaching record highs, is exacerbating financial strains, especially in emerging markets. The IMF urged policymakers to restore fiscal stability through improved revenue collection, spending priorities, and financial management. It also recommended targeted public assistance over broad price controls to mitigate the effects of rising energy and food prices.

Monetary policy should focus on maintaining price stability, particularly in countries experiencing high inflation and robust economic activity. The IMF also highlighted the potential of AI to boost productivity and growth but warned of associated risks, including cyber threats.

The organization is adapting to a rapidly changing global environment by enhancing its policy support and reform capabilities, particularly for low-income countries burdened by rising costs. The IMF stressed the importance of international cooperation to address these economic challenges effectively.

The meeting, held in Thailand, underscored the spirit of collaboration among countries, with the IMF expressing gratitude to Thailand for hosting and facilitating productive discussions at the event.