IMF urges members to act swiftly on inflation and deficits
IMF chief Kristalina Georgieva urged member countries to respond quickly to rising inflation and cut large fiscal deficits, noting that an artificial-intelligence investment boom is keeping inflation resilient. She also said AI could boost Asian developed economies by 0.5 to 1 percentage point and h
The International Monetary Fund (IMF) is urging member countries to take swift action against rising inflation and to work on reducing large fiscal deficits, Managing Director Kristalina Georgieva said on Monday.
Speaking at the IMF and World Bank annual meetings, Georgieva said an investment boom in artificial intelligence is helping keep inflation resilient. She also noted that surging defence spending following the energy shock triggered by the Middle East war has pushed up inflation, increasing pressure on central banks to raise interest rates, which negatively affects developing countries and emerging markets.
Georgieva identified demographic changes, economic integration and advances in AI as three major transformations currently facing Asia. She projected that AI would boost growth in Asia's advanced economies by about 0.5 to 1 percentage point, and that productivity gains from AI could help ease the region's population-ageing problem.
She added that deepening regional trade agreements and reducing non-tariff barriers could lift Asia's GDP by about 1.8 per cent in the long term.