Policymakers take on energy shock, rising debt at IMF-World Bank meetings

BANGKOK

The week of meetings in Bangkok will include closed-door and public events, and policy announcements from the world's top economic officials. (AFP Photo)

Finance ministers and central bankers meet in Bangkok this week for the annual gatherings of the International Monetary Fund and World Bank, with the global economy buffeted between the U.S.-Iran war's energy shock, rising debt pressures and the AI boom.

The meetings, which run through Oct. 17, will see policymakers tackle some stark choices, with the IMF calling on governments to rein in spending even as vulnerable citizens' needs may be growing in the face of surging inflation and climate risks.

On Oct. 13, the IMF will unveil its global economic forecast, along with detailed regional outlooks through the week, as policymakers set about tackling the challenges darkening the economic horizon.

Chief among the concerns will be the economic fallout of the U.S. war on Iran, which has seen energy prices skyrocket. Despite the crisis, the Fund has called on countries to curb spending on subsidies and instead build their fiscal buffers after years of shocks since the pandemic.

Critics say that approach is just not feasible for low-income countries, and that multilateral lenders need to do more.

Advanced economies have seen a boom in investment in artificial intelligence technology drive stock markets to new highs and bolster economic growth.

The IMF has said that the amount invested in AI will likely outstrip the capital put into building the railroads, the electricity grid or global telecommunications networks.

Several events through the week will focus on AI's impact, including in developing countries that may not be exposed to its economic benefits as they lie outside its supply chains.

The week will also see several key meetings on the sidelines, including of G20 finance ministers, where spiking bond yields will be high on the agenda.