WASHINGTON D.C.: The global economy has proved more resilient than feared to the energy shock caused by the Iran war, although mounting fiscal pressures and stubborn inflation remain concerns, International Monetary Fund Managing Director Kristalina Georgieva said August 25.

Speaking to reporters ahead of next week's Group of 20 finance leaders meeting in Asheville, North Carolina, Georgieva described a "tug of war" between the negative impact of the Gulf energy supply shock and growth tailwinds from the artificial intelligence investment boom, which was beginning to spread beyond the United States.

She 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 potential for central banks to keep monetary policy tight to control inflation.

Georgieva also raised concerns about deteriorating fiscal conditions in some countries, as evidenced by rising bond yields and a stalled disinflation process.

Global growth is "resisting powerful headwinds from high debt levels, stubborn inflation, and trade tensions. Thus far, it has weathered the energy shock caused by the closure of the Strait of Hormuz better than we feared, thanks to a combination of factors," Georgieva said.

Those factors include countries drawing down oil and gas reserves, increases in non-Gulf energy supplies, lower energy demand, greater renewable energy capacity and a shift back to coal power generation in some places.

Georgieva said artificial intelligence investment in the United States was helping keep corporate earnings and consumer spending strong.

Other countries were also increasing data-center construction and supplies of AI hardware, she said.