The International Monetary Fund has urged governments to strengthen their economic defences.
Speaking at an International Monetary and Financial Committee briefing in Bangkok on Saturday, October 17, committee chair Mohammed Aljadaan said economies had remained resilient, but mounting challenges were testing that strength.
He pointed to the human and economic costs of wars and warned that disruption to important waterways and trade routes threatened food and energy security. Low-income countries and fragile states face particularly difficult conditions, he said.
IMF Managing Director Kristalina Georgieva said the meetings reflected both confidence in the global economy’s resilience and concern about inflation, debt and climate risks.
She also cautioned against relying too heavily on the artificial intelligence investment boom as a source of growth. While the technology offers opportunities, she called for cooperation between governments, AI companies and other stakeholders to manage its risks.
The remarks followed the IMF’s October World Economic Outlook, which projects global growth of 3.1% in 2026 and 3.4% in 2027. Global headline inflation is forecast at 4.7% this year before easing to 4.1% next year.
The report identifies energy-importing economies with limited participation in the technology value chain as facing a particularly difficult outlook. It also warns about further conflict, renewed trade tensions and pressure on public finances.
For governments responding to rising living costs, the IMF favours temporary, targeted income support for vulnerable households rather than broad measures that suppress prices. Its wider recommendation is to rebuild room in public budgets while protecting essential support and investments that can strengthen growth.
