The IMF Managing Director Kristalina Georgieva called for urgent measures worldwide to address rising debt and the widening economic inequality driven by the AI boom, high borrowing, and geopolitical conflicts. Speaking ahead of the IMF-World Bank meetings in Bangkok, Georgieva emphasized the need for policymakers to act decisively using available tools to maintain financial stability and promote growth. She highlighted the rapid expansion of AI infrastructure as a major economic driver but warned of risks if corporate earnings fall short. The AI surge benefits leading tech countries in Asia-Pacific but leaves many behind, exacerbating inequality. Georgieva stressed the importance of regulating AI, controlling public spending, raising borrowing costs to fight inflation, and supporting vulnerable populations. Efforts to improve labor flexibility, entrepreneurship, and energy security are also critical.
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