Global economy in tug-of-war between oil shock and AI boom: IMF chief

admin — Wed, 26 Aug 2026 07:13:00 +0000

President of the International Monetary Fund Kristalina Georgieva waves after a meeting with Uruguay’s President Yamandu Orsi in Montevideo, Uruguay. File
| Photo Credit: AP

The global economy has weathered the oil shock caused by the closure of the Strait of Hormuz “better than feared” due to various factors, including an investment boom in artificial intelligence, IMF managing director Kristalina Georgieva has said.

“What started out as a U.S. phenomenon with AI is now becoming a growth engine for the global economy, with other countries ramping up construction of data centres and other infrastructure,” Ms. Georgieva told journalists on Tuesday (August 25, 2026).

She said the global economy had “weathered the energy shock caused by the closure of the Strait of Hormuz better than we feared” due to a combination of factors, including drawdowns of oil and gas reserves and increases in non-Gulf supply.

“And it is enjoying the tailwinds from an AI investment boom, most notably in the U.S., where both corporate earnings and consumer demand remain strong,” Ms. Georgieva said ahead of the G-20 finance ministerial meeting in Asheville, North Carolina, next week.

She said the global economy was witnessing a tug-of-war between the negative supply shock from West Asia and the positive demand shock from AI.

“The net impact of these two forces is asymmetric across countries and depends on their exposure to energy disruptions, macroeconomic vulnerabilities, and their position in the AI chain,” Ms. Georgieva said.

Ms. Georgieva said risks to the outlook were more balanced than around the Spring Meetings but remained tilted to the downside, while uncertainty remained high.

“Mounting fiscal pressures, as evidenced by rising bond yields, and a stalled disinflation process are sources of worry for both markets and policymakers,” she said.

The IMF chief said oil and gas reserves were shrinking and the northern hemisphere winter would arrive before long.

“This means the energy shock is not over: a renewed rise in oil prices could fuel inflation, forcing central banks to retain a restrictive policy stance, with knock-on implications for debt service and economic activity,” she said.

Ms. Georgieva said the future impact of AI remained subject to significant uncertainties, including possible risks to financial stability.

“Should the outlook deteriorate, it will further widen the dispersion of growth prospects around the world. Some countries, especially low-income countries that depend on fuel imports, are already in a tough spot,” she said.

For low-income countries, disruptions in the supply of oil, gas and other key commodities such as fertiliser could translate into food insecurity, a problem potentially exacerbated by extreme weather, Ms. Georgieva said.

“The risk of falling behind on AI is also more prominent in the developing world,” she said.

In July, the IMF lowered its 2026 global growth forecast to 3%, warning of downside risks from the West Asia conflict, trade fragmentation and uncertainties surrounding artificial intelligence.

The institution’s next revision of its growth outlook is due in mid-October during the IMF and World Bank annual meetings in Bangkok.

Published – August 26, 2026 12:43 pm IST

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In IMF Chief’s Chandrayaan-3 Praise, An Interstellar Reference: Report

admin — Sun, 10 Sep 2023 16:32:34 +0000

The Rs 600-crore Chandrayaan-3 mission was launched on July 14. (File)

New Delhi:

Several world leaders at the G20 Summit here congratulated Prime Minister Narendra Modi on the success of Chandrayaan-3, with IMF Managing Director Kristalina Georgieva hailing India for achieving the feat “in a budget less than that of the movie Interstellar”, according to sources.

During various sessions and meetings of the G20, many world leaders showered praise on India for its lunar mission and also lauded the successful launch of Aditya L1, India’s first space-based mission to study the Sun.

While the British Prime Minister Rishi Sunak congratulated India and the entire world for Chandrayaan-3, South African President Cyril Ramaphosa hailed the country for the feat and recalled that he had watched a telecast of the lunar landing while taking a break during the BRICS meeting, sources said.

“I congratulate you on the Moon landing. But as an economist let me congratulate you for doing it in a budget less than that of the movie, ‘Interstellar’. Bravo!” International Monetary Fund (IMF) Managing Director Georgieva was quoted by a source as saying at a meeting during the G20.

Chandrayaan-3 touched down on the lunar south pole at 6.04 pm on August 23 after a flawless 41-day voyage, in a giant leap for India’s space programme.

The Rs 600-crore Chandrayaan-3 mission was launched on July 14 on board Launch Vehicle Mark-III (LVM-3) rocket.

The movie “Interstellar”, a 2014 epic science fiction film co-written and directed by Christopher Nolan, was made at a reported cost of about Rs 1,400 crore.

During the G20 Summit, Prime Minister of Singapore Lee Hsien Loong said, “Congratulations on the Moon mission and also on Aditya L1 mission.” Mauritian Prime Minister Pravind Kumar Jugnauth also congratulated India on the success of Chandrayaan and Aditya L1 missions, saying it displays the technological prowess of India and is an inspiration for “a voyage to the future”.

At a bilateral meeting after the summit, Brazilian President Luiz Inacio Lula da Silva congratulated PM Modi and India for the historic achievement of Chandrayaan-3’s landing in the south polar region of the Moon as well as the successful launch of India’s first solar mission, Aditya-L1, both important feats which mark remarkable milestones in space exploration.

Italian Prime Minister Giorgia Meloni, her Netherlands counterpart Mark Rutte and President of the Union of Comoros and African Union Chairperson Azali Assoumani also hailed India for its Chandrayaan-3 success during the G20 sessions.

In the G20 New Delhi Leaders’ Declaration adopted on Saturday, the grouping said, “We also congratulate India on the successful landing on the Moon on 23 August 2023.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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IMF chief – Artifex.News

Global economy in tug-of-war between oil shock and AI boom: IMF chief

In IMF Chief’s Chandrayaan-3 Praise, An Interstellar Reference: Report