IMF Warns of Economic Resilience Limits Amid Rising Risks

The International Monetary Fund (IMF) has issued a warning regarding the global economy's resilience, stating it is approaching its limits due to several factors including rising energy prices, increasing public debt, higher borrowing costs, and vulnerabilities associated with the artificial intelligence boom. Silvana Tenreyro, Economic Counsellor and Director of the IMF’s Research Department, presented these findings during the World Economic Outlook at the 2026 IMF and World Bank Group Annual Meetings in Bangkok, Thailand.

The IMF projects global economic growth at 3.1 percent for 2026, with global headline inflation expected to rise to 4.7 percent before decreasing to 4.1 percent in 2027. Tenreyro identified prolonged energy supply disruptions, excessive concentration in AI-related investments, and rising fiscal pressures as significant risks.

She noted that adjustments in energy supply and production have helped cushion the economy, but these measures are nearing their limits, and extreme weather linked to El Niño could exacerbate supply pressures.