The International Monetary Fund and the World Bank concluded their annual meetings in the Thai capital Bangkok on Saturday, issuing warnings about rising global debt levels and risks associated with over-reliance on artificial intelligence, despite positive indicators reflecting the global economy's ability to continue growing in the face of current challenges.
Agence France-Presse quoted IMF Managing Director Kristalina Georgieva as saying that participants agreed the global economy has shown considerable resilience, supported by rapid developments in artificial intelligence and the economic vitality seen in the Asian continent, but these positive factors are accompanied by increasing challenges requiring caution and follow-up.
Georgieva pointed out that rising public debt levels, increasing bond yields, tightening financial conditions, along with ongoing inflationary pressures and climate risks, represent key factors raising concerns about the global economy's outlook in the coming period. She emphasized that inflation remains a heavy burden on the most vulnerable groups, especially in low-income countries, noting that rising debt service costs limit governments' ability to direct resources toward development and social protection.
She noted that the share of debt repayment from public revenues in low-income countries has risen significantly in recent years, stressing the importance of supporting these countries in restructuring their debts when needed, and enhancing their ability to attract investments and mobilize local resources. Regarding artificial intelligence, Georgieva warned against over-reliance on it as the sole driver of economic growth, considering that diversifying growth sources remains essential to maintaining long-term economic stability.
She praised the level of cooperation between governments and technology companies regarding the development of regulatory frameworks for artificial intelligence, describing this cooperation as an important element to ensure benefiting from the opportunities provided by this technology while minimizing its potential risks. The annual meetings of the IMF and the World Bank were attended by finance ministers, central bank governors, and economic officials from various countries around the world.
Source: Syrian Arab News Agency (SANA)
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