“What we need at this moment is urgent and practical international cooperation,” she said during meetings of the IMF and World Bank in Bangkok, Thailand.
Her warning came amid IMF forecasts of an economic contraction and concerns about risks associated with rapid technological development.
In its Global Financial Stability Report on Tuesday, the IMF said that while “financial markets have remained resilient,” risks to financial stability remain elevated.
The IMF identified three risks that could trigger market turmoil: an AI-related market correction if investment and profit expectations fall short; higher bond yields driven by inflation and fiscal imbalances; and cyber threats that could disrupt financial services and undermine confidence.
AI-related cybersecurity risks are also prompting regulators to strengthen coordination, according to the report.
