Banking News – Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has stated that although the global economy is demonstrating greater resilience than expected amid various challenges, some significant risks will persist in the days ahead. Speaking at a special program of the Qatar Economic Forum held in New York on Sunday, Georgieva noted that high inflation, rising debt servicing costs, and rapid investment in the artificial intelligence (AI) sector are major potential risks to the global economy.

According to Georgieva, inflation in various countries around the world has not been able to decline as quickly as expected. Stating that the inflation problem is not in a position to be resolved immediately, she said some central banks may be required to tighten monetary policy further to maintain price stability. She stated that along with efforts to maintain price stability, the cost of servicing debt is also increasing. Although governments have accepted the need to maintain fiscal discipline, adequate steps are still yet to be taken accordingly, she noted.

Caution Needed on AI Sector Investment

Georgieva also stated that caution should be exercised regarding potential risks associated with the investment rapidly expanding in the artificial intelligence sector. According to her, large-scale investment is being made in the AI sector with high expectations. In this process, since debt-based investment and interconnected financial transactions are increasing, risks may also arise, she noted.

She drew attention to the possibility that if the AI technology does not yield returns as expected, it could create disappointment among investors, and its impact could reach the broader financial system. According to Georgieva, although the financial risk of the AI sector is mainly concentrated in the United States, many countries in Asia and Europe are connected to the global supply chain of AI. Therefore, she stated that the impact of major fluctuations in this sector could also affect other economies.

Around 3 Percent Economic Growth a Significant Achievement

Georgieva has taken positively the resilience demonstrated by the global economy despite various challenges. She stated that maintaining around 3 percent economic growth in the global economy amid the energy supply crisis, inflation, high debt costs, and other economic shocks is a significant achievement. She also mentioned that the example of rapid and effective steps taken from various sides at the necessary time to address the energy supply crisis has made her optimistic.

Cooperation and Interdependence Remain in Global Economy

Georgieva stated that although there is discussion of the global economy becoming increasingly divided, interdependence and cooperation among countries remain important. According to her, although the world appears less integrated than before, countries are still deeply connected to each other due to trade, investment, technology, and supply chains. “There is discussion of the world becoming more divided. The world has indeed become less integrated than before. But we are still dependent on each other and are cooperating,” she said.

New Economic Projections to Be Published in October

The IMF is preparing to publish new projections on the global economy in October. According to Georgieva, the projections will also cover the existing situation of high risk and uncertainty in the global economy. She emphasized that governments, central banks, and the private sector must all exercise caution regarding the challenges and risks of the global economy in the days ahead. “We must remain cautious and vigilant. Risks are high, and uncertainty has become the new normal,” Georgieva said.