The recent meeting of the International Monetary and Financial Committee (IMFC) hosted a thorough discussion on the global macroeconomic and financial impacts of numerous conflicts and crises worldwide. In acknowledging that the IMFC is not the platform to resolve geopolitical and security matters, members recognised the significant effects of current wars and conflicts on the global economy. The newly appointed Chair, Minister Mohammed Aljadaan, was warmly welcomed as Nadia Calviño’s tenure as IMFC Chair concluded.
Despite the ongoing impact of wars and conflicts on the global economy, there is a perception that a soft landing for the global economy may be on the horizon. Economic activity has exhibited greater resilience than anticipated in many regions, though it remains variable across countries. Nonetheless, the medium-term global growth prospects remain feeble. The adverse effects of ongoing conflicts and wars continue to exert a substantial influence on the global economy. Inflation has decreased in most regions due to supply shocks and tight monetary policy, yet its persistence remains a cause for concern. Although risks to the outlook are balanced, potential downsides persist based on near-term paths for inflation and interest rates, asset prices and financial stability, fiscal policy actions, and geopolitical developments.
In light of these challenges, the IMFC’s policy priorities concentrate on achieving price stability, reinforcing fiscal sustainability, and safeguarding financial stability while promoting inclusive and sustainable growth. There is also a strong emphasis on international cooperation to boost the resilience of the global economy and the international monetary system. The International Monetary Fund’s (IMF) Managing Director’s Global Policy Agenda (GPA) outlines policy priorities, and the IMFC eagerly anticipates the IMF executing this work in accordance with its mandate and leveraging collaboration with others.
The committee also expressed its dedication to collaborating to fortify the global financial safety net and address global debt vulnerabilities. Furthermore, there is an urgency for a realignment in quota shares to reflect members’ relative positions in the world economy while safeguarding the quota shares of the poorest members.
The IMF’s role in providing financial assistance to aid members in addressing their balance of payments issues and achieving economic stability and inclusive growth is pivotal. The committee looks forward to reviewing the IMF’s facilities and financing aimed at meeting balance of payments needs and establishing the IMF on a sustainable footing.
One area of focus is the IMF’s continual efforts to enhance its capacity development (CD) and to secure appropriate financing, including the launch of the Global Public Finance Partnership to respond to the growing demand for CD on public finances.
The meeting concluded with expressions of gratitude to Ms. Kristalina Georgieva for her unwavering service as IMF Managing Director during her tenure and welcoming her reappointment for a second term. The next meeting is anticipated to be held in October 2024.
Esteemed individuals from various countries attended the successful meeting, and their valuable insights and contributions are greatly appreciated. The participation of observers from international organisations further enriched the discussion and offered a broader perspective. The meeting highlighted the IMF’s commitment to addressing global economic challenges.
In conclusion, the recent IMFC meeting has laid the groundwork for continued collaboration in addressing urgent global economic challenges, and it underscores the significance of international cooperation in fostering economic stability and growth.
For media enquiries, please contact the IMF Communications Department.