IMF chief GEORGIEVA urged governments to tackle rising fiscal risks and publish
credible plans to keep debt and deficits on a sustainable path, and called on
central banks to remain highly focused on price stability. She said the global
economy is under pressure from high inf and trade tensions, with AI investment
partially offsetting shocks; rising bond yields and stalled disinflation signal
continued high uncertainty. GEORGIEVA warned the Iran war has not ended and the
world faces a tug-of-war between a Middle East-driven negative supply shock and
an AI-driven positive demand shock, and flagged energy supply constraints, El
Niño weather and AI-related risks to financial stability as material downside
risks.
