Published on: 2026-10-15
Source: United Nations – United Nations –
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October 14, 2026 Economic Development
The global economy continues to demonstrate resilience against numerous shocks and high uncertainty, but its buffer is gradually shrinking. This was stated by International Monetary Fund Managing Director Kristalina Georgieva at the IMF’s annual meeting in Bangkok.
“Energy and budgetary reserves are being depleted, and inflation remains persistently high in many countries,” the head of the IMF stated.
According to her, the prospects for global growth are currently influenced simultaneously by two opposing factors. On one hand, economic activity is restrained by a negative energy shock caused by the conflict in the Middle East. On the other hand, the increase in demand associated with the development of artificial intelligence technologies contributes to economic growth.
Georgieva emphasized that the greatest benefit from the technological boom is received by economies closely integrated into supply chains serving the needs of artificial intelligence.
“Many of such countries are here, in Asia,” she noted.
The head of the IMF also pointed out that exporters of energy resources not affected by armed conflicts are in a more favorable position today. At the same time, the most serious impact is felt by low-income countries, as well as states affected by conflicts and instability, especially if they depend on energy imports or are left out of technological advancement.
Call for budget discipline
One of the IMF’s main messages to world governments has been a call to strengthen public finances before economic problems worsen.
“It is now urgent to address the repair of the financial house before the cracks widen. Budget revenues need to be increased, expenses rationalized, and public financial management improved,” Georgieva said.
She also called on the authorities to protect the population from the consequences of rising food and energy prices, but to do so through targeted support for citizens rather than through large-scale price controls.
According to the head of the IMF, the current situation requires cautious and restrained macroeconomic policy. For governments, this means improving the business climate, strengthening competition, investing in digital and energy infrastructure, and pursuing active labor market policies.
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