Brief
IMF chief says AI investment sustains 3% global growth
Georgieva highlighted AI’s role in boosting Asian economies and warned of job impacts.
By Felo News Desk · Published
International Monetary Fund Managing Director Kristalina Georgieva told participants at the opening day of IMF and World Bank meetings in Bangkok that strong AI infrastructure investment is keeping global growth around 3%.
What happened
Georgieva said the AI boom is delivering a "demand shock, an investment shock" that could raise growth in advanced Asian economies by 0.5‑1.0 percentage point and in emerging Asian economies by 0.2‑0.8 points. She linked the trend to hardware producers such as Thailand, which is hosting the meetings. The IMF forecast 3% global growth for 2026 in July and will issue an updated outlook on Tuesday. About 18,000 people are expected at the week‑long sessions, though some finance ministers, including U.S. Treasury Secretary Scott Bessent and Spain’s finance minister Arcadi España, will skip them.
What the reports add
Georgieva described AI as a "slow‑moving tsunami" with profound effects on jobs, education and tax revenue. She cited an IMF estimate that AI could eventually affect 40% of jobs – augmenting, downgrading or eliminating them – and noted an early study showing 10% of U.S. jobs already require AI skills. While routine roles shrink, low‑paid jobs are growing in construction and data‑centre sectors.
What was said
"AI, love it, hate it. It’s already here," Georgieva said, adding that an AI assistant now gives her a 30‑second briefing each day. Singapore President Tharman Shanmugaratnam warned that AI is reducing entry‑level job demand for graduates and could create a "new divergence" between developing and advanced economies. World Bank President Ajay Banga noted the bank’s use of "small AI" to boost productivity in agriculture, health and education in emerging markets.
How it came about
The remarks follow the IMF’s recent upgrade of its 2026 growth forecast to 3.1% amid an uneven AI boom, as reported in Felo’s IMF 2026 growth forecast upgrade article. The Bangkok meetings bring together finance officials from the IMF’s 191 member states to discuss the macroeconomic impact of rapid AI investment.
Key facts
- IMF Managing Director Kristalina Georgieva said AI infrastructure is keeping global growth near 3% despite energy shocks. (techcentral.co.za)
- Georgieva estimated AI could lift growth in advanced Asian economies by 0.5‑1.0 percentage point and in emerging Asian economies by 0.2‑0.8 points. (techcentral.co.za)
- The IMF forecast 3% global growth for 2026 and will release an updated outlook on Tuesday. (techcentral.co.za)
- Georgieva said AI could affect 40% of jobs over time, with 10% of U.S. jobs already requiring AI skills. (techcentral.co.za)
- Singapore President Tharman Shanmugaratnam warned AI could reduce first‑job demand for graduates and widen growth divergence. (techcentral.co.za)
Sources
- [1] techcentral.co.za — originally reported as “AI is now propping up the world economy, says IMF”
