Key facts
- IMF raised global growth forecast to 3.1% for 2026.
- US Treasury Under Secretary Erin Browne pushed back against IMF warnings.
- South Korean shares fell 18% in a week.
- Indonesian stocks dropped 11.6% on Friday.
The head of the IMF appealed to global leaders to cooperate on economic risks, including AI and the Middle East conflict, during the IMF and World Bank annual meetings in Bangkok. Kristalina Georgieva expressed concern about the speed of technological change and its potential to widen the gap between advanced and poorer economies. US Treasury Under Secretary Erin Browne, however, presented a more optimistic view, highlighting US economic strength and innovation, and urged the IMF to adopt a more balanced assessment. The IMF slightly raised its global growth forecast to 3.1% for 2026 but flagged significant risks from AI investment, debt levels, and ongoing conflicts. Emerging market stocks have shown volatility amid concerns about rising US interest rates and the sustainability of the AI boom.