IMF chief urges cooperation on AI and war risks, as US hails economic momentum
SPY•IMF chief Kristalina Georgieva urged global leaders to cooperate on risks including AI and war, while a US Treasury official highlighted strong US growth. The IMF raised its 2026 global growth forecast to 3.1%, below the historical average.
1. Contrasting economic outlooks
Georgieva said rapid technological change, disruptions to trade, high food and energy prices, and lingering wars threatened to widen the gap between advanced economies and poorer countries. She called for urgent international cooperation and said she worried about regulating AI and ensuring poorer countries were not left behind.
2. US emphasizes resilience
US Treasury Under Secretary Erin Browne said the IMF should take a more balanced approach, citing strong US growth and opportunities from innovation, energy abundance, and productivity-enhancing reforms. She said US tax, trade, energy, and deregulation policies were paving the way for stronger investment and durable economic growth.
3. Markets and lending pressures
The article said concerns about the AI investment cycle had hit major markets, while South Korean shares recorded their biggest weekly fall in 18 years and Japan's stock market fell 5.4% over the week. IMF and World Bank officials reported elevated demand for grants and loans; the IMF said its low-interest lending to low-income countries had quadrupled since the COVID pandemic.
