The global economy is confronting two opposing pressures - a negative energy supply shock and a positive demand shock driven by artificial intelligence (AI), International Monetary Fund Managing Director Kristalina Georgieva said Wednesday.

Speaking in Singapore ahead of the IMF and World Bank’s upcoming annual meetings in Thailand, Georgieva said the global economy must navigate three major crosscurrents: the rapid expansion of AI, persistently high energy prices and record levels of public debt, The Caspian Post reports, citing Anadolu Agency.

She said global public debt is on track to exceed 100% of global gross domestic product in the near future, reaching levels not seen since the end of World War II.

Advanced economies are particularly notable for carrying some of the world’s highest gross debt burdens, Georgieva said.

She noted that opposing forces are pulling the global economy in different directions.

Georgieva warned that oil prices remain around $100 per barrel because of transportation costs and other risks.

She also said natural gas supplies from the Gulf remain severely disrupted as shipping through the Strait of Hormuz faces threats.

Turning to technology, Georgieva said AI hardware and related products now represent more than 10% of global goods trade.

She added that AI could eventually generate as much as 0.5% of additional global growth each year if countries manage the technology effectively.

Georgieva called on economic policymakers to stop postponing necessary measures and put credible fiscal consolidation plans into action.

She also urged central banks in various countries to maintain a prudently hawkish monetary policy stance, warning that the AI investment boom, energy shocks and elevated public debt are contributing to inflationary pressures.