Global Economy Undergoing Profound Transformation Amid Heightened Uncertainty, Says IMFC Chair
The International Monetary and Financial Committee (IMFC) has reaffirmed its commitment to safeguarding global macroeconomic and financial stability as the world economy undergoes what it describes as a “profound transformation” marked by heightened uncertainty, persistent conflicts, and evolving policy shifts.
In a Chair’s Statement delivered by Mr. Mohammed Aljadaan, Saudi Arabia’s Minister for Finance, at the Fifty-Second Meeting of the IMFC, members underscored the need for sound policies that foster confidence, build resilience, and ensure debt sustainability amid a challenging environment of low growth, high debt, and increasing climate-related shocks.
“Growth has been resilient, but strains are emerging,” the Committee noted, emphasizing that ongoing wars and conflicts continue to impose heavy humanitarian and economic costs with significant negative spillovers. It stressed that lasting peace remains essential for sustainable growth and long-term stability.
The IMFC members pledged to pursue credible fiscal strategies anchored in medium-term frameworks aimed at rebuilding buffers, improving spending efficiency, and supporting productivity-enhancing investments while preserving social cohesion. Central banks, the statement said, remain “strongly committed to maintaining price stability” in a data-dependent and well-communicated manner.
On financial stability, the Committee highlighted the need to strengthen oversight of systemic risks stemming from artificial intelligence, non-bank financial institutions, and digital assets, while harnessing the benefits of technological innovation. It also called for advancing structural reforms to improve the business environment, streamline regulation, and combat corruption.
The IMFC further reaffirmed its support for countries undertaking reforms to address debt vulnerabilities, particularly low-income and fragile states. It welcomed progress under the G20 Common Framework for debt treatment and urged enhanced transparency from all stakeholders, including private creditors.
The statement also expressed support for the IMF’s ongoing reviews of its surveillance, lending, and conditionality frameworks, as well as efforts to strengthen capacity development and ensure the sustainability of concessional financing under the Poverty Reduction and Growth Trust (PRGT).
Reiterating its backing for a strong, quota-based and adequately resourced IMF, the Committee called for the swift completion of domestic processes related to the 16th General Review of Quotas, in line with commitments under the Diriyah Declaration, to ensure fairer representation of member economies.
