THE IMF PRESIDENT WARNED THAT FISCAL RISK WAS RISING AND CALLED ON COUNTRIES TO CONTROL DEBT DEFICITS

ON 26 AUGUST, THE IMF MANAGING DIRECTOR, GEORGIEVA, URGED GOVERNMENTS TO ADDRESS RISING FINANCIAL RISKS, STATING THAT “ALL COUNTRIES NEED TO ADDRESS THEIR OWN FINANCIAL PROBLEMS AND DEVELOP AND PUBLISH CREDIBLE PLANS TO ENSURE THAT DEBT AND DEFICITS ARE ON A SUSTAINABLE TRACK”. AT THE SAME TIME, SHE CALLED ON CENTRAL BANKS “TO FOCUS HEAVILY ON THEIR RESPONSIBILITY FOR PRICE STABILITY”. ACCORDING TO GEORGIEVA, THE GLOBAL ECONOMY WAS UNDER PRESSURE UNDER HIGH INFLATION AND TRADE TENSIONS, BUT THE IMPACT WAS PARTLY OFFSET BY GROWTH CAUSED BY INVESTMENT IN ARTIFICIAL INTELLIGENCE. HOWEVER, RISING BOND YIELDS AND STAGNATING INFLATION SUGGEST THAT THE ECONOMIC OUTLOOK REMAINS HIGHLY UNCERTAIN. SHE STATED THAT THE ENERGY SHOCK CAUSED BY THE IRANIAN WAR HAD NOT YET ENDED AND THAT THE GLOBAL ECONOMY WAS FACING A PULL-SAW BETWEEN “NEGATIVE SUPPLY SHOCKS FROM THE MIDDLE EAST” AND “POSITIVE DEMAND SHOCKS FROM ARTIFICIAL INTELLIGENCE”. SHE ALSO WARNED THAT ENERGY SUPPLY, EL NIÑO WEATHER AND THE IMPACT OF AI ON FINANCIAL STABILITY REMAINED MAJOR RISKS。