IMF Chief Urges Cooperation on AI and War Risks as US Hails Economic Strength

At the Bangkok meetings, IMF chief Kristalina Georgieva called for urgent cooperation on fast moving AI, the Middle East conflict, trade disruption and high food and energy prices. Reuters report that She said these pressures could widen the gap between rich and poor nations, and noted that 10 year bond yields in the US, Germany and Japan have hit multi decade highs. The Fund recently lifted its 2026 global growth forecast slightly to 3.1%, still below the historical average.

US Calls for a More Balanced Outlook

US Treasury Under Secretary Erin Browne said the IMF should also weigh positive shocks from American innovation, energy abundance and productivity reforms, pointing to record US stock prices and strong output.

Market Stress and Rising Lending Demand

South Korean shares posted their biggest weekly fall in 18 years, Japan’s market lost 8%.

Indonesian stocks dropped 11.6% in a day after MSCI said the country no longer qualified as an emerging market. IMF low interest lending to low income countries has quadrupled since the pandemic.