New Delhi, March 5: Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), expressed deep concerns about the uncertainty surrounding the global economy on Thursday. She emphasized that the world is facing unpredictable shocks, urging policymakers and businesses in Asia to remain agile and economically robust.
Speaking at a gathering in Bangkok, Georgieva noted that the global economy is entering a phase of persistent uncertainty. Countries must be prepared for new challenges that may arise at any moment.
She advised governments to focus on strengthening their economies rather than worrying about factors beyond their control. “The world is currently witnessing significant changes in technology, demographics, trade, and geopolitics,” she stated.
Georgieva further explained that these changes, coupled with recurring global shocks, are creating a more uncertain economic environment. She referenced recent conflicts in the Middle East, warning that prolonged strife could impact global economic stability.
“A drawn-out conflict could affect global energy prices, market sentiment, economic growth, and inflation, putting additional pressure on policymakers worldwide,” she said.
She also highlighted that energy security remains a major concern for several Asian economies. Recent events have already led to volatility in the region’s stock markets.
Georgieva remarked, “A swift resolution to conflicts would benefit the global economy.” She acknowledged that Asia has made remarkable economic progress over the past 25 years.
“Since the early 2000s, when many countries in the region were recovering from financial crises, Asia has strengthened financial sector oversight, built substantial foreign exchange reserves, and improved economic stability,” she added.
The IMF chief urged Asian countries to enhance productivity and competitiveness, particularly by leveraging new technologies like artificial intelligence.
She noted, “To capitalize on AI, significant investments in digital infrastructure, internet connectivity, and skill development are essential.”
Georgieva stressed the need for robust policies that encourage innovation, eliminate regulatory barriers, and strengthen financial markets to support private investment.
She concluded by emphasizing the importance of implementing adequate safeguards around AI, as this technology spreads across different economies.
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