WorldEconomy
IMF chief says AI boom helped global economy absorb Hormuz shock
IMF Managing Director Kristalina Georgieva said the global economy weathered the Strait of Hormuz energy shock better than expected, supported by strong AI investment, reserve drawdowns, and non-Gulf supplies. She warned AI's future impact remains uncertain and could pose financial stability risks, especially for developing countries.
IMF Managing Director Kristalina Georgieva said on Tuesday that the global economy handled the Strait of Hormuz energy shock "better than we feared." She attributed the resilience to strong AI investment, drawdowns of oil and gas reserves, and higher supplies from outside the Gulf. Georgieva described the situation as a "tug-of-war" between the negative supply shock from West Asia and the positive demand shock from AI. She said AI, initially a US phenomenon, is now becoming a growth engine for the global economy, with other countries ramping up construction of data centres and other infrastructure. The US in particular is seeing strong corporate earnings and consumer demand, she noted. However, Georgieva said the future impact of AI remains subject to significant uncertainties, including possible risks to financial stability, especially in developing countries.
WorldEconomy
IMF chief says AI boom helped global economy absorb Hormuz shock
IMF Managing Director Kristalina Georgieva said the global economy weathered the Strait of Hormuz energy shock better than expected, supported by strong AI investment, reserve drawdowns, and non-Gulf supplies. She warned AI's future impact remains uncertain and could pose financial stability risks, especially for developing countries.
IMF Managing Director Kristalina Georgieva said on Tuesday that the global economy handled the Strait of Hormuz energy shock "better than we feared." She attributed the resilience to strong AI investment, drawdowns of oil and gas reserves, and higher supplies from outside the Gulf. Georgieva described the situation as a "tug-of-war" between the negative supply shock from West Asia and the positive demand shock from AI. She said AI, initially a US phenomenon, is now becoming a growth engine for the global economy, with other countries ramping up construction of data centres and other infrastructure. The US in particular is seeing strong corporate earnings and consumer demand, she noted. However, Georgieva said the future impact of AI remains subject to significant uncertainties, including possible risks to financial stability, especially in developing countries.