International Monetary Fund Managing Director Kristalina Georgieva said the global economy has weathered the energy shock linked to the Iran war and the closure of the Strait of Hormuz better than feared. Speaking ahead of next week’s Group of 20 finance leaders meeting in Asheville, North Carolina, she described a “tug of war” between the negative Gulf energy supply shock and growth support from an artificial intelligence investment boom spreading beyond the United States. Georgieva said risks to the global outlook were more balanced than in April but remained tilted to the downside because of mounting fiscal pressures and the possibility that central banks will keep monetary policy tight to control inflation. Oil and gas reserve drawdowns, increased non-Gulf energy supplies, weaker energy demand, expanded renewable capacity and a shift back to coal generation in some places have helped absorb the shock. U.S. AI investment is supporting corporate earnings and consumer spending, while other countries are increasing data-center construction and AI hardware supplies.