IMF's Georgieva: AI-driven growth slowdown would matter for central banks
IMF chief Kristalina Georgieva said any slowdown in AI-driven growth would have to be factored in by central banks fighting stubborn inflation.
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what happened
IMF Managing Director Kristalina Georgieva said on Friday that central banks worldwide would need to consider any slowdown in growth driven by AI investment when weighing their next steps against inflation. She said worries about dependence on the AI investment boom and stretched valuations were affecting markets globally. “Things are going up and down, and this is likely to continue,” she said, adding that the volatility would complicate policymakers’ work as risks to price stability grow.
Tech stocks suffered a steep sell-off on Thursday, driven by fears that the Democrats’ win in the US midterm elections would bring tighter regulatory scrutiny of AI and slow data center construction. Investors moved into bonds for safety. Margin calls, along with panic among retail investors and hedge funds, deepened the slide.
Georgieva said the AI boom is lifting growth in some countries and partly offsetting a negative oil-supply shock from the war in the Middle East, but it is also adding to inflation pressure and financial stability concerns. Last month the IMF warned that a sharp drop in AI investment could send asset prices sharply lower and cut global GDP by 1.1% by 2028, including a 1.8% fall in US output. Georgieva did not repeat that downside forecast on Friday. Reuters reported, citing congressional aides and advocates, that Democrats plan to push a wave of new legislation on AI systems and data center development once they take control of Congress in January.
why it matters
For markets, there are two signals here: the risk that AI-driven growth disappoints, and the possibility of tougher rules for the sector. That weighs on technology shares and supports demand for government bonds, while central banks face another source of uncertainty in setting rates.
market impact
US tech stocks: regulation fears and the risk of an AI slowdown weigh on the sector; Treasuries gain as a safe haven
- US tech stocks pressure down — fears of AI regulation and slower data center investment
- US Treasuries pressure up — investors shift into safe assets after the equity sell-off
tags
instruments
sources
- IMF's Georgieva says any slowdown in AI-driven growth would be factor for central banks — Reuters, 6 November 2026 at 23:48 UTC
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