IMF chief urges cooperation on AI and war risks, as US hails economic momentum

The IMF chief has called for global cooperation to address economic risks, particularly those affecting developing countries. She highlighted the challenges posed by rapid advancements in AI and ongoing conflicts, including the war in the Middle East. The IMF's updated growth forecast remains below historical averages, indicating persistent economic instability and inequality.

During the annual meetings in Bangkok, discussions centered on the impact of high inflation and rising interest rates on global growth. The IMF warned that without addressing these issues, the gap between advanced economies and poorer nations could widen further. The urgency for international collaboration was emphasized as a means to mitigate these risks.

Despite these concerns, US officials pointed to positive economic indicators in the US, arguing for a more balanced view of the global economic outlook. The contrasting perspectives highlight the complexities of the current economic landscape, particularly for emerging markets facing volatility and uncertainty in the wake of AI investment fluctuations and geopolitical tensions.