New York City (ANTARA) - The Managing Director of the International\nMonetary Fund (IMF), Kristalina Georgieva, believes that the world\neconomy is facing risks due to difficult-to-tame inflation, increasing\ndebt servicing costs, and artificial intelligence (AI) investments, even\nthough the global economy has proven more resilient than many\nfeared.<\/p>\n
\u201cInflation is difficult to curb. We do not anticipate a quick\nsolution. And that means many central banks must tighten (policy),\u201d said\nGeorgieva during a special edition dialogue of the Qatar Economic Forum\nin New York City, USA, on Sunday (20\/9).<\/p>\n
According to Georgieva, efforts to maintain price stability also\nincrease the costs and difficulties of debt servicing. She noted that\nwhile there is widespread understanding regarding the need for fiscal\nconsolidation, the actions taken so far have not been sufficient.<\/p>\n
She also highlighted potential risks arising from the use of leverage\nand circular financing in AI investments, stating that this is something\nthat must be monitored closely.<\/p>\n
\u201cIf AI disappoints because of our high expectations\u2014if those\nexpectations are not met\u2014that disappointment has the potential to cause\nshocks to the system,\u201d said Georgeyva.<\/p>\n
She assessed that the risks in AI financing are primarily\nconcentrated in the US, while many other players in Asia and Europe are\ninvolved in the AI supply chain.<\/p>\n
According to Georgieva, the IMF\u2019s new projections for the world\neconomy, to be released in October, will reflect the fact that risks\nremain high.<\/p>\n
\u201cMaintaining growth at around 3 percent is an extraordinary\nachievement, considering all the shocks we have experienced,\u201d she\nremarked.<\/p>\n
Georgieva stated that she sees optimism from the extraordinary\nactions taken swiftly when necessary to address energy supply\nshocks.<\/p>\n
\u201cMeanwhile, there is much talk about a fragmented world, and indeed\nthe world is currently less united. However, this world remains a place\nwhere we are interdependent and work together,\u201d said Georgieva.<\/p>\n
\u201cWe must be careful and vigilant. The risks are high and uncertainty\nis the new normal,\u201d she concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/imf-global-economy-faces-various-risks-despite-showing-resilience-1789999096", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }