IMF member countries expressed concern on Friday about the uncertainty created by trade tensionadvances in artificial intelligence and changes in global markets, but a board statement expressed hope for resilient growth and continued disinflation.
The statement by the presidency of the International Monetary and Financial Committee, which represents the 191 member economies of the IMFalso pointed out on Friday the risks arising from low economic growth, high debt, extreme weather events, excessive global imbalances and wars.
“Major political changes in trade and other areas are reshaping global markets and policy frameworks, increasing uncertainty”stated the statement of the president of the Cmfi, Mohamed Al-Jadaan, Minister of Finance of Saudi Arabia.
“These changes, as well as transformative forces such as digitalization and demographic shifts, pose challenges but also opportunities.” The statement noted that disinflation would vary between countries.
The IMF said this week that countries that impose tariffs, like the United States, face possibly higher inflation for longer.while some Asian economies, such as China, are at risk of deflation.
The statement also emphasized the need for central banks to maintain the credibility of their policies as well as their independence. “Central banks remain firmly committed to maintaining price stability, in line with their respective mandates, and will continue to adjust their policies based on data and in a well-communicated manner,” the statement added.
He also called for addressing financial vulnerabilities and risks. “by strengthening surveillance of systemic risks arising from artificial intelligence, non-bank financial institutions and digital assets, while harnessing the benefits of financial and technological innovation.”
