The International Monetary Fund (IMF) called on world leaders Friday for urgent cooperation to address growing economic risks, highlighting rapid advances in artificial intelligence (AI) and the ongoing conflict in the Middle East as key challenges. Speaking at the IMF and World Bank annual meetings in Bangkok, IMF Managing Director Kristalina Georgieva stressed the need for coordinated action amid a fragile global economy marked by persistent inflation, rising interest rates, and uneven growth.

The IMF recently revised its global growth forecast for 2026 modestly upward to 3.1 percent, although it remains below the historical average. The fund warned that multiple risks threaten both growth and financial stability, including a possible slowdown in AI investments, escalating debt levels, and the prolonged war in the Middle East. Georgieva noted that without the US-Israeli-led conflict against Iran and Tehran’s closure of the Strait of Hormuz—actions that have triggered a major energy shock—AI-driven innovation could have boosted growth more substantially.

“The sheer speed of technological change adds to a list of challenges, such as disruptions in the global trading system, elevated food and energy prices, and enduring conflicts, all of which risk widening disparities between advanced economies and poorer countries,” Georgieva said during a plenary session. She also flagged bond markets’ rising yields in the United States, Germany, and Japan, indicating investor concerns about the outlook. On a panel following her speech, Georgieva shared her worries about how to regulate AI responsibly and ensure developing nations are not left behind by its rapid evolution.

In contrast, US officials presented a more optimistic view. Erin Browne, US Treasury Under Secretary, in a briefing with reporters, highlighted strong US economic performance, record stock market levels, and improvements in Japan's economy. She urged the IMF to adopt a more balanced perspective, emphasizing the resilience of the global economy and pointing to American innovation, energy abundance, and productivity-enhancing reforms as sources of positive momentum.

“The IMF should equally consider opportunities for positive economic shocks, particularly those driven by advances in artificial intelligence and energy sectors,” Browne said. She credited US policies under President Donald Trump—including tax reform, trade adjustments, energy development, and deregulation—for fostering investment, higher productivity, and sustained economic growth.

Meanwhile, emerging markets have experienced volatility amid expectations of further US interest rate hikes, which elevate borrowing costs globally. Additionally, concerns about the trajectory of AI investments have unsettled several major financial markets, underscoring the complex and divergent outlooks shaping discussions at the Bangkok meetings.