AI boom cushions global economy against oil supply shock: IMF

The global economy has fared better than anticipated in weathering energy supply shocks, according to IMF Managing Director Kristalina Georgieva, who cited a combination of factors including strategic drawdowns of oil and gas reserves and increased non-Gulf production.

Georgieva told reporters that artificial intelligence investment has emerged as a significant growth catalyst for the worldwide economy, extending well beyond initial US-led developments. "What started out as a US 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," she said.

The remarks come as the IMF chief highlighted sustained strength in American corporate earnings and consumer demand as additional supports for global economic stability. These factors have combined to help offset concerns about disruptions to international energy supplies, particularly from crucial shipping routes.

Georgieva's assessment precedes next week's G-20 finance ministerial meeting in North Carolina, where discussions on global economic conditions and policy coordination are expected to take place among major economies.