Stock market today: Dow, S&P 500, Nasdaq jump as chip stocks rebound, Iran and Israel exchange strikes

International Monetary Fund managing director Kristalina Georgieva said the world economy needs to build resiliency to a new reality of rolling global shocks.

“I am worried that we are not completely internalizing yet that this is how the world is going to be,” Georgieva told Bloomberg. “We are not going to get to a place where shocks are gone.”

The International Monetary Fund’s mission is to promote global financial stability by lending money to countries facing economic crises, monitoring the world economy, and advising governments on economic policy. The fund maintains a funding line of roughly $1 trillion.

In an interview with Bloomberg, Georgieva cited the development of AI — and the way major governments handle its ascension — as a key risk facing the market, pointing to the “backlash” against the globalization movement of the post-war era.

“We collectively, including the fund, did not appreciate the backlash against globalization that came from the fact that, yes, the world economy is doing better as a whole, but many communities were hollowed out because their jobs disappeared and there was not enough attention to them,” Georgieva said.

The IMF will update its guidance for global growth in July after downgrading its growth projections in April on the back of the Iran war.