BANGKOK -- Finance officials and central bankers from around the world will gather in Bangkok this week for the International Monetary Fund's annual meeting, starting on Monday, with discussions expected to center on inflation, artificial intelligence and climate change.

Thailand is hosting the IMF and World Bank annual meetings for the first time in over three decades, having last welcomed the event before the 1997 Asian financial crisis. The annual meetings typically take place in Washington for two consecutive years, then move to a member country every third year. The officials last gathered in Asia in 2018, on the Indonesian resort island of Bali. "This year's meetings come at a time when many countries are expected to face increasingly difficult monetary policy decisions, as higher oil prices stemming from worsening tensions over Iran fuel energy inflation, while an intensifying and prolonged El Nino raises concerns about food [price] inflation," said Toru Nishihama, chief economist at Dai-ichi Life Research Institute in Tokyo.

The protracted conflict in the Middle East has pushed up energy prices, stoking inflation around the world, particularly in import-dependent economies such as Japan, South Korea and Singapore.

Central banks are walking a tightrope. Some have accelerated the pace of interest rate hikes to combat inflation, while others have held off on additional rate increases out of concern that tighter monetary policy could further slow growth.

Another focus during the weeklong discussions will be the global investment boom in AI and its wider economic implications. Nishihama pointed out that with interest rates rising globally, "Investment is increasingly flowing into AI and semiconductors, intensifying competition for capital with other global priorities such as energy and infrastructure. I will be watching how international institutions assess the risks posed by this trend and how concerned they are about it," he said.

IMF Managing Director Kristalina Georgieva said in her opening address on Wednesday in Singapore that the global economy is being pulled in two directions: a negative energy supply shock and a positive demand shock from AI. "The combined impact of these two forces is highly uneven across the world," she said.

Georgieva also cautioned that the "AI building boom is inflationary. The energy and food shocks are inflationary. Tariffs, defense spending and high public debt can be inflationary." The gathering comes shortly after severe floods hit Bangkok and surrounding areas, prompting authorities to draw up contingency plans for further flooding during the meetings.

The El Nino weather phenomenon, which is expected to run through February 2027 has brought drought and elevated temperatures across Asia. Rivers have dried up in Indonesia's Kalimantan provinces. Japan's capital, meanwhile, experienced a record-breaking 37-day stretch of rain and a massive flood tore through northern Nepal.

With several pressing factors weighing on the economy, bond yields are climbing around the world as the fiscal picture worsens in many countries. "We don't see decisive action in the high-debt advanced economies, where the need of the hour is for credible medium-term fiscal consolidation plans, supported in some cases by upfront fiscal measures, including to take some of the pressure off monetary policy," the IMF's Georgieva warned. "Asia is particularly vulnerable to external shocks through trade, energy and financial channels, making it important to discuss how the region can strengthen its resilience to such shocks," said Makoto Saito, an economist at Japan's NLI Research Institute.

A sign publicizing the IMF and World Bank meetings is displayed in a park next to the meeting venue in Bangkok, on Oct. 8.

The meetings run through Sunday. In addition to the release of the IMF's World Economic Outlook, the meetings will feature a plenary session, a fireside chat with U.S. Federal Reserve Chair Kevin Warsh and a range of other events and discussions. The Group of 20 finance ministers and central bank governors will gather on Thursday, on the margins of the IMF meetings.

Bangkok's hosting of the events "symbolizes Asia's growing importance in the global economy," said Saito. "Asia is not only a key driver of global growth, but its influence on the world economy is also expanding through trade, supply chains, investment and financial markets," he noted.

ASEAN, in particular, has "strong economic ties with major economies and has become increasingly important as companies restructure their supply chains," Saito said. "At a time of growing fragmentation in the global economy, holding the meetings in the region provides an opportunity to discuss Asia's challenges and growth opportunities in the context of the global economy as a whole." Thailand hopes to use the meetings to showcase its growth potential and attract new investment, Thai Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas said, highlighting advanced technologies as an area that could propel the country toward high-income status.

"With geopolitical conflicts going on, everybody is seeking a place to relocate, and we will use this opportunity to tell the world that Thailand is the appropriate place to invest," Ekniti told reporters on Wednesday.