IMF chief: AI is both hope and hazard for the global economy

IMF Managing Director Kristalina Georgieva said AI investment is on track to match or exceed spending on railroads and power grids, but the boom is inflationary and adds to record public debt. Global public debt is set to pass 100% of GDP, and disappointing hyperscaler earnings could trigger a wider shock.

• AI investment as a share of GDP will match or exceed railroad and grid spending
• AI hardware and related products exceed a tenth of world goods trade
• IMF: AI could add up to half a percentage point to annual global growth
• Global public debt is near its highest since WWII and set to top 100% of GDP