International Monetary Fund (IMF) Managing Director Kristalina Georgieva says the world has entered an era where uncertainty is no longer an exception but a constant. Speaking in an interview with TIME late last year, she pointed to the simultaneous impact of geopolitics, technology, demographic shifts, and climate change as forces rapidly transforming how people live and work.
According to Georgieva, these overlapping pressures are accelerating change across the global economy, creating what she described as “more fog within which we operate,” making economic decision-making increasingly complex.
Global Trade Still Matters, but the Old Order Is Gone
Despite rising geopolitical tensions and trade disruptions, Georgieva maintained that trade remains a key driver of global growth. However, she cautioned that the world has moved away from a familiar system governed by broadly accepted global trade rules.
“We have left one equilibrium that we knew,” she said, noting that the international community is still navigating toward a new, undefined trade order. Until that new balance is reached, trade uncertainty is likely to persist.
Artificial intelligence, Georgieva said, holds enormous potential to lift productivity, particularly at a time when global growth has been sluggish. From agriculture and healthcare to education and transportation, AI is already delivering tangible benefits.
Yet she warned that the world is dangerously underprepared for AI’s labor-market impact. The IMF estimates that about 60% of jobs in advanced economies will be affected by AI, a shift Georgieva likened to a “tsunami hitting the labor market.”
To manage the risks, Georgieva urged advanced economies to focus on responsible AI deployment, strong regulation, and ethical safeguards. She stressed that innovation must translate into productivity gains across all sectors, while regulatory frameworks should prevent AI from deepening social and economic divides.
How the IMF Is Using AI Internally
Georgieva revealed that she has personally undergone training on AI productivity tools, including Microsoft Copilot, and that the IMF has developed several AI assistants tailored to its work. Staff are encouraged to experiment with AI-driven tools to improve efficiency.
So far, she said, the investment appears to be paying off. As a data-heavy institution, the IMF is particularly well positioned to benefit from AI-powered analysis.
On inflation, Georgieva offered cautious optimism, noting that price pressures are easing globally. She praised central banks for maintaining stability in a volatile environment and stressed that their independence remains critical—especially amid political pressure to influence interest-rate decisions.
At the same time, she emphasized that independence must go hand in hand with accountability, transparency, and rigorous decision-making processes.
Looking ahead to a planned visit to China, Georgieva described the country’s economic future as being at “a fork in the road.” She said China must decide whether to continue its export-led growth model or transition toward a more consumption-driven economy.
Failure to rebalance, she warned, could intensify global trade tensions, as an influx of low-cost Chinese goods may prompt other countries to respond with tariffs.
Source: norvanreport.com
