The global economy has so far shrugged off $100 oil. It won\u2019t forever.<\/p>\n
\u201cWinter is coming,\u201d Kristalina Georgieva, managing director of the International Monetary Fund said at Semafor\u2019s Next 3 Billion event in New York, warning that prices will keep climbing.<\/p>\n
The Iran war \u2014 and the energy shocks that have accompanied it \u2014 has elevated inflation globally since February, leading central banks around the world to raise interest rates. That raised their borrowing costs \u2014 the US will spend more money this year paying interest on the national debt than on its military \u2014 which leaves less to cushion the economic fallout.<\/p>\n
While AI has turbocharged economic development globally, counteracting some of the energy shock, the tech falls short of compensating for the full effect of the Strait of Hormuz\u2019s closure.<\/p>\n
She\u2019s also watching the economic impacts on the real economy.<\/p>\n
\u201cWe should prepare for people being more unhappy,\u201d she said. \u201cMaybe on the street.\u201d<\/p>\n
She said the IMF doesn\u2019t yet see the demand for AI-related investments crowding out the ability of global governments to borrow, but \u201cit\u2019s possible this becomes a problem so we have to watch it,\u201d she said.\u00a0<\/p>\n
While many market economies \u201chave done miracles to reduce their debt levels, to put in place fiscal discipline and shrink spreads for their borrowing. Now what\u2019s happening is interest rates go up, they\u2019re washing away hard-earned gains in emerging markets. So it\u2019s not competition for money, per se, but it\u2019s the punishment for someone else\u2019s sins that emerging markets have to bear,\u201d she said.<\/p>\n","protected":false},"excerpt":{"rendered":"The global economy has so far shrugged off $100 oil. It won\u2019t forever. \u201cWinter is coming,\u201d Kristalina Georgieva,…\n","protected":false},"author":2,"featured_media":608944,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":["post-608943","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-new-zealand","tag-newzealand","tag-nz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/608943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=608943"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/608943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/608944"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=608943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=608943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=608943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}