The International Monetary Fund (IMF) has urged nations to work together on artificial intelligence (AI) and accept some budget cuts to secure future economic growth. This call comes as the global economy faces challenges from energy price shocks and high levels of public debt. Kristalina Georgieva, the head of the IMF, made these remarks during a speech in Singapore, just before the IMF's annual meetings in Bangkok. She explained that the global economy is caught between a negative energy supply shock—like rising oil prices—and a positive demand shock driven by AI, creating an uneven economic impact across the world. Georgieva highlighted that AI is becoming a powerful driver of economic growth, with the potential to boost global annual growth by up to 0.5 percentage points. Components related to AI now account for more than 10% of global merchandise trade, according to the IMF. However, the Fund is concerned about a divide between countries: those deeply involved in technology supply chains, such as the United States, China, India, and Asian chip manufacturers, are reaping the benefits of the AI boom, while many others are being left behind. To fully benefit from AI's potential, Georgieva stressed the importance of global cooperation. She argued that such collaboration would be in the interest of all countries, including the implementation of regulations to ensure safety and fairness. However, this is complicated by the growing technological rivalry between the United States and China, which makes unified action more difficult. The economic benefits of AI are being offset by high energy prices and the financial challenges faced by many countries. The price of a barrel of Brent crude oil remains around $100, up from $70 at the beginning of 2026. As winter approaches, the IMF warned that these price tensions could get worse. In response to inflation, major central banks have started to increase interest rates more quickly, with the European Central Bank raising rates in June and September. Georgieva noted that few governments are increasing financial support for businesses and households, as global public debt has reached its highest level since World War II and is soon expected to exceed 100% of global GDP. In particular, advanced economies, especially in the eurozone, have some of the highest debt levels. This situation, along with tighter monetary policies and competition for funding from tech companies, has led to a rise in bond rates. The yields on 10-year government bonds in the United States, Germany, and Japan have reached their highest levels in years, increasing the cost of borrowing. In France, the 10-year government borrowing rate is nearing 5%, a level not seen since 2002. Georgieva expressed concern that "we do not see decisive action in highly indebted advanced economies where the time should be for credible medium-term budget consolidation plans." She warned that many countries have enjoyed low interest rates for 17 years, which made debt management easier. However, with rising interest rates, this advantage is ending. She emphasized that it is necessary to explain to people that budget consolidation is in their interest, and that accepting some sacrifices now is essential to ensure growth in the future.