Tunis:The International Monetary Fund (IMF) has emphasized the need for governments to restore fiscal stability as rising public debt is set to increase borrowing costs. Despite these challenges, the IMF remains optimistic about the global economy's ability to sustain itself, predicting real GDP growth exceeding 3% this year. This growth is expected to be driven by investment in AI technology, which could help counterbalance the effects of the ongoing energy crisis.
According to Thai News Agency, the prolonged war in the Middle East has exacerbated the energy crisis, leading to a surge in oil prices following an attack on a Saudi Arabian airport. Prices have reached $104.50 per barrel, contributing to the economic strain. Petwa Goewa, Deputy Director for Research at the IMF, highlighted the potential risks of economic stagnation and insufficient AI development in various countries, which could hinder economic recovery.
While the IMF suggests that drawing upon oil reserves and adapting business strategies could aid economic support, it stresses the importance of governments developing sustainable plans to address the escalating debt levels. The organization recommends that fiscal stability be a priority to ensure long-term economic health.