At the International Monetary and Financial Committee Press Briefing at the IMF Annual Meeting in Bangkok, Thailand, on October 17, Mohammed Aljadaan, the IMFC Chair, spoke about the profound challenges facing the global economy.
“The global economy continues to undergo a profound challenges while demonstrating remarkable resilience. However, mounting challenges are testing economic stability and weighing on growth prospects.
Wars and conflicts are imposing a heavy humanitarian toll with significant economic cost and spillovers. Disruptions to critical waterways and trade routes also threaten energy and food security.
Meanwhile, artificial intelligence offer significant opportunities to boost productivity. But, and there is always but when it comes to AI, it also carries risks that could widen economic disparities. These challenges are especially acute in low income countries and fragile states.
There is no room for complacency. Fiscal authorities need to credible medium term plans to rebuild buffers while protecting both vulnerable populations and growth enhancing investments.”
IMF Managing Director Kristalina Georgieva then talked about the optimism and worry that she has seen concerning IMF members across the week of meetings.
“Let me give you my reflection of the meetings. They were marked by both optimism and worry. Optimism from the resilience of the global economy, the promise of AI, the dynamism of Asia. But AI is also recognized to be a source of worry. And so are inflation, high levels of debt, worse climate risks.
Our membership recognized that investment in good policies and institutions have anchored the global economy. Resilience doesn't fall from the sky, and also recognized that AI boom provides the main source of support. But that also is a risk because when we are dependent on one particular driver of growth, it is like we stand on one leg.
There was recognition of the incredible speed with which AI is advancing. The decisions policymakers make today will shape the path of a very powerful technology, and quite a lot of attention to
we want the benefits, but we want to manage the risks. We want to see guardrails to protect people and businesses and the future of countries. And on that count, I was very impressed by how much this topic of cooperation, cooperation between governments, AI companies and other stakeholders, but more broadly, a spirit of cooperation.”
To watch the full briefing, click here.
