IMF strategy chief warns that geopolitical fractures and bifurcation threaten global economic stability, particularly as AI infrastructure becomes strategic asset.

The post-war global order is fracturing just as a high-speed AI revolution and relentless supply shocks demand unprecedented global teamwork, warned Christian Mumssen, the International Monetary Fund's newly appointed director of strategy. Speaking at an Atlantic Council event, Mumssen urged policymakers worldwide to aggressively guard their economic credibility before the next crisis hits, calling on governments to maintain sound public finances and stable prices.

He cautioned that frequent supply disruptions and geopolitical tensions are poised to continuously threaten global progress unless nations build immediate resilience.

"The global economy has proved remarkably resilient in the face of these forces," Mumssen said, referencing a rapid succession of recent shocks including the COVID-19 pandemic, cost-of-living crises, trade frictions, and active conflicts in Ukraine and the Middle East. "But the sheer scale of what is under way creates an exceptionally high degree of uncertainty and we should expect the unexpected."

A central challenge of the current economic landscape, Mumssen noted, is that several massive structural transformations are occurring simultaneously. He specifically highlighted the unprecedented acceleration of artificial intelligence and digital finance, warning that governments must actively manage this transition to ensure benefits translate into inclusive economic growth.

Compounding these domestic challenges is a deteriorating international landscape where the post-war global order is rapidly giving way to a fragmented, multipolar world. Ironically, Mumssen observed, this geopolitical division is undermining the exact international cooperation needed to navigate these twin crises.

"The problem is: just when massive structural challenges and a new technological revolution would call for greater international cooperation, the global governance system is fragmenting," Mumssen said, urging countries to actively collaborate with the IMF on coordinated policy solutions.