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A World Bank report concludes that a decade of shocks has left developing countries weakened as AI reshapes the global economy. These nations face debt, weak investment, and stalled development, limiting their capacity to benefit from an AI-driven productivity super-cycle.
IMF Managing Director Kristalina Georgieva said the world is not internalizing that shocks have become permanent. She cited COVID-19, the war in Ukraine, tariffs turmoil, and the Middle East conflict. The IMF has a lending capacity of just under US$1 trillion and Georgieva stressed the need for objective analysis to address AI's impact on labor markets.
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