IMFC Discusses Global Economic Challenges and Priorities
In the Forty-Ninth Meeting of the International Monetary and Financial Committee (IMFC) held on April 19th, 2024, members gathered to address the profound impact of ongoing wars and conflicts on the global economy.
Led by Mr. Mohammed Aljadaan, Minister for Finance of Saudi Arabia, the IMFC discussed the repercussions of conflicts such as the war in Ukraine, the humanitarian crisis in Gaza, and shipping disruptions in the Red Sea.
While acknowledging that the IMFC is not the platform to resolve geopolitical issues, members emphasized the significant economic consequences of these conflicts, underscoring the importance of global peace.
Expressing gratitude to outgoing Chair Nadia Calviño for her leadership, the IMFC welcomed Mohammed Aljadaan as the new Chair. The meeting highlighted the potential for a soft landing in the global economy, with economic activity showing resilience in many regions.
However, medium-term growth prospects remain weak, compounded by ongoing conflicts. Despite a decrease in inflation in most areas, caution is warranted due to its persistence.
Policy priorities outlined by the IMFC include achieving price stability, strengthening fiscal sustainability, and safeguarding financial stability while promoting inclusive and sustainable growth.
Central banks are urged to maintain a measured pace of easing, tailored to country-specific circumstances. Structural reforms aimed at addressing pressing challenges such as climate change, debt vulnerabilities, and rising inequality were emphasized.
International cooperation was underscored as crucial for improving the resilience of the global economy and the international monetary system. Commitments were reiterated regarding exchange rates, global imbalances, and governance, with a reaffirmation of support for the rules-based multilateral trading system. The IMFC also pledged continued support for vulnerable countries undertaking reforms.
Looking ahead, the IMFC expressed its commitment to a strong, quota-based IMF and emphasized the Fund’s role in providing financial assistance and capacity development. It welcomed the review of various IMF facilities and initiatives aimed at addressing debt vulnerabilities and supporting inclusive growth.
The meeting concluded with appreciation for Kristalina Georgieva’s service as IMF Managing Director and anticipation for her second term.
The IMFC’s next meeting is scheduled for October 2024, highlighting ongoing efforts to address global economic challenges and promote sustainable development.
