Bangkok:The International Monetary Fund (IMF) has urged member states to take immediate steps to address rising inflation and reduce significant budget deficits.
According to Oman News Agency, Kristalina Georgieva, the IMF's Managing Director, highlighted during a panel discussion at the IMF and World Bank annual meetings in Bangkok that increased defense spending is exacerbating inflation. This follows an energy shock triggered by military tensions in the Middle East, consequently pressuring central banks to hike interest rates.
Georgieva noted that these factors are impacting developing countries and emerging markets, which are now feeling the effects of rising yields in advanced economies.
The IMF anticipates that oil prices will keep increasing until 2027, driven by strong demand and growing geopolitical risks. Additionally, the IMF has linked the broader use of artificial intelligence to rising costs of energy, food, fertilizers, and basic industrial products globally.
