Bank for International Settlements: The global economy is facing multiple pressures, including high debt and AI boom

On June 29, the Bank for International Settlements (BIS) said that from rising public debt to financial fragility to the sustainability of the artificial intelligence (AI) boom, these global pressures are exacerbating risks and highlighting the need for prudent policy formulation. The Bank for International Settlements 'Annual Economic Report released on Sunday warned that there are currently a series of complex vulnerability factors, including tight fiscal conditions, persistent supply shocks and the risk of inflation remaining high again. The bank said that while economic activity has remained resilient in recent months, policymakers must act decisively to maintain stability. "Policy measures must be coordinated to avoid constraints on the global economy. Ultimately, success depends on a sound fiscal and financial foundation,"said Pablo Hernandez de Cos, managing director of the Bank for International Settlements.