The global economy faces risks from stubborn inflation, higher debt-servicing costs and heavy investment in artificial intelligence (AI), even though it has proved more resilient than many feared, International Monetary Fund Managing Director Kristalina Georgieva said on Sunday.
Earlier this month, the IMF forecast global growth of 3.0 percent in 2026, down from 3.5 percent in 2025, with the economy showing resilience despite the Middle East conflict as technology-driven activity cushions the blow.
Speaking at a special edition of the Qatar Economic Forum in New York on Sunday, on the eve of the United Nations General Assembly, Georgieva warned that the world economy's resilience has not removed the risks that could yet slow it.
"Inflation is stubborn. We are not anticipating a quick resolution. And that means that many central banks have to tighten," she said.
The fight to restore price stability has also made debt more costly to service, she added, noting that while there is broad recognition of the need for fiscal consolidation, action has fallen short.
The IMF chief also pointed to risks from leverage, or heavy borrowing, and from circular financing, in which money moves between related companies, in AI investment, saying this is "something that we have to be mindful of."
"If AI disappoints, because we have these high expectations, if they don't materialize, disappointment may lead to potentially a shock to the system," she warned.
The AI-financing risk is "primarily concentrated in the United States," she noted, even as companies across Asia and Europe sit within the AI supply chain.
The IMF's next World Economic Outlook, due in October, is expected to show those risks remain elevated.
"Having growth that would be hovering around 3 percent is a massive achievement, given all the shocks we have been experiencing," said the IMF official.
She also cited the rapid global response to energy-supply shocks as a reason for optimism.
"While there is a lot of talk about a fragmented world. And indeed, it is less unified. It is still a world in which we are interdependent and we cooperate," Georgieva said.
"We have to be careful and cautious. The risks are high and uncertainty is the new normal," she added.
IMF chief flags inflation and AI risks as global economy stays resilient
