WorldEconomy
IMF chief says AI boom helped ease Hormuz energy shock, warns developing countries lag
IMF Managing Director Kristalina Georgieva said the global economy weathered the Strait of Hormuz energy shock better than feared, aided by strong AI investment and alternative supplies. She warned that AI's future impact remains uncertain and poses potential financial stability risks, particularly for developing countries.
IMF Managing Director Kristalina Georgieva said the global economy handled the Strait of Hormuz energy shock "better than we feared," citing strong AI investment, drawdowns of oil and gas reserves, and higher supplies from outside the Gulf as mitigating factors.
Speaking about the rise of artificial intelligence, Georgieva described it as a phenomenon that began in the United States and is now becoming a growth engine for the global economy, with other countries ramping up construction of data centres and related infrastructure.
She said the global economy is witnessing a tug-of-war between the negative supply shock from West Asia and the positive demand shock from AI. The world is enjoying tailwinds from an AI investment boom, most notably in the US, where corporate earnings and consumer demand remain strong.
Georgieva also cautioned that the future impact of AI remains subject to significant uncertainties, including possible risks to financial stability, especially in developing countries.
- IMF
- Kristalina Georgieva
From
WorldEconomy
IMF chief says AI boom helped ease Hormuz energy shock, warns developing countries lag
IMF Managing Director Kristalina Georgieva said the global economy weathered the Strait of Hormuz energy shock better than feared, aided by strong AI investment and alternative supplies. She warned that AI's future impact remains uncertain and poses potential financial stability risks, particularly for developing countries.
IMF Managing Director Kristalina Georgieva said the global economy handled the Strait of Hormuz energy shock "better than we feared," citing strong AI investment, drawdowns of oil and gas reserves, and higher supplies from outside the Gulf as mitigating factors.
Speaking about the rise of artificial intelligence, Georgieva described it as a phenomenon that began in the United States and is now becoming a growth engine for the global economy, with other countries ramping up construction of data centres and related infrastructure.
She said the global economy is witnessing a tug-of-war between the negative supply shock from West Asia and the positive demand shock from AI. The world is enjoying tailwinds from an AI investment boom, most notably in the US, where corporate earnings and consumer demand remain strong.
Georgieva also cautioned that the future impact of AI remains subject to significant uncertainties, including possible risks to financial stability, especially in developing countries.
- IMF
- Kristalina Georgieva
From