IMF preparing El Nino assistance
Summary
The IMF is preparing support for countries hit by El Nino as it warns of worsening food security, inflation pressure and risks for vulnerable economies in Asia and the Pacific. Kristalina Georgieva also cautioned governments against broad energy subsidies and said the IMF is watching AI-related financial stability risks.
Key Points
- The International Monetary Fund is preparing assistance for countries affected by El Nino, which is expected to intensify and disrupt crops, rainfall and food supplies.
- IMF managing director Kristalina Georgieva warned that vulnerable countries such as Bangladesh, Laos and Pacific island nations could face severe pressure from climate shocks and rising energy prices.
- She urged governments to avoid overly generous energy subsidies, reduce debt and adopt targeted support measures instead.
- Georgieva said the IMF sees artificial intelligence as a growth driver but is monitoring the risk of a market pullback that could create financial instability.
