WorldPosted at: Sep 21 2026 7:10PM


Global economy resilient but risks remain high: IMF chief Georgieva

New York, Sep 21 (UNI) The global economy has proved more resilient than many had expected, but continues to face high risks from stubborn inflation, rising debt-servicing costs and the financing patterns surrounding artificial intelligence (AI) investment, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said.
Speaking at a dialogue during a special edition of the Qatar Economic Forum in New York City, Georgieva said inflation remained persistent and is unlikely to be resolved quickly, forcing many central banks to tighten monetary policy.
"Inflation is stubborn. We are not anticipating a quick resolution. And that means that many central banks have to tighten."
Georgieva said efforts to ensure price stability has also increased the cost and difficulty of servicing debt. While there is considerable understanding of the need for fiscal consolidation, she said, there has not been enough action.
Fiscal consolidation refers to efforts to improve government finances, including by controlling fiscal deficits and debt.
Beyond inflation and debt, Georgieva highlighted potential risks associated with leverage and circular financing in AI investment, saying the issue is "something that we have to be mindful of."
"If AI disappoints, because we have these high expectations, if they don't materialize, disappointment may lead to potentially a shock to the system," she warned.
Georgieva said the risks related to AI financing were "primarily concentrated in the United States", although many players in Asia and Europe were also part of the AI supply chain.
The IMF's latest projections for the global economy, due to be released in October, will reflect the fact that risks remain high, Georgieva said.
Despite these risks, she said global economic growth of around 3 per cent would represent a significant achievement given the series of shocks the world economy had faced.
"Having growth that would be hovering around 3 percent is a massive achievement, given all the shocks we have been experiencing," Georgieva said.
She also pointed to reasons for optimism, citing the remarkable speed of action taken when necessary to counter an energy supply shock.
"While there is a lot of talk about a fragmented world. And indeed, it is less unified. It is still a world in which we are interdependent and we cooperate," Georgieva said.
"We have to be careful and cautious. The risks are high and uncertainty is the new normal," she added.UNI AAB
Tags: #Global economy resilient but risks remain high: IMF chief Georgieva
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