IMF Managing Director Georgieva warns of global economic resilience limits

Speaking at the annual meetings in Bangkok, International Monetary Fund Managing Director Kristalina Georgieva stated that the global economy has reached its limit of resilience against recurring shocks and called on governments to take measures against rising borrowing costs.

Global Growth and Economic Shocks

Speaking at the annual IMF and World Bank meetings held in Bangkok, Kristalina Georgieva warned that the global economy has reached its limit of resilience against recurring shocks.

It was stated that energy and fiscal buffers have been exhausted, and that persistent inflation combined with rising interest rates is increasing debt repayment pressures.

Growth Forecasts and Regional Impacts

While the 2026 global growth forecast was maintained at 3.1 percent, it was noted that this rate remains below the 3.4 percent level recorded last year.

It was emphasized that AI-driven demand is supporting economic activity, with countries such as Thailand, Malaysia, South Korea, and Singapore being positively affected by this process.

Debt Risks and Calls to Countries

The rise in the ratio of debt repayment costs to government revenues in low-income countries from 6 percent to 14 percent was identified as a serious risk factor.

Georgieva called on China to increase domestic consumption, the US to reduce budget deficits, and Europe to strengthen investments.

Financial Stability and Cybersecurity Threats

Serious warnings were issued that AI-driven cyberattacks could threaten financial stability.

It was reiterated that governments must strengthen public finances and be prepared for potential risks.