Overview
- The IMF issued the warning during its World Economic Outlook and Global Financial Stability Report presentations in Bangkok on Tuesday, calling the three risks capable of becoming systemic if they amplify existing vulnerabilities.
- The Fund said AI‑related valuations are exposed because heavy investment and concentrated lending could trigger sharp corrections that weaken borrowers and linked financing structures.
- Rising sovereign yields are already increasing borrowing costs for many governments, and the IMF warned a further jump could force asset sales, cut the value of bonds used as collateral and deepen market disorder.
- The report identified large-scale cyberattacks as a growing threat that could disrupt payments, trading platforms or cloud services and spread quickly through an interconnected financial system.
- The IMF urged policymakers to restore fiscal buffers, place debt on sustainable paths and strengthen cyberdefenses, and it specifically advised emerging markets to rebuild reserves and reduce reliance on volatile external funding.