The International Monetary and Financial Committee (IMFC) warned that the global economy remains exposed to renewed shocks despite stronger-than-expected resilience, urging governments to strengthen fiscal policies, address debt risks, and deepen international cooperation to sustain growth.
In its statement following the committee’s 54th meeting in Bangkok, Thailand, on October 17, members cautioned that the recent performance of the global economy should not obscure mounting financial and geopolitical risks.
“The global economy has weathered the latest in a series of shocks better than expected, but buffers have been eroded, and resilience cannot be taken for granted,” the committee said.
The statement identified wars, trade tensions, and supply chain disruptions as major threats to economic stability, warning that further escalation could disrupt critical trade routes, raise commodity prices, and worsen energy and food insecurity.
Although global growth has remained broadly stable, the committee noted that economic outcomes differed across countries, leaving low-income economies and fragile states particularly vulnerable.
It also warned that rising sovereign bond yields in major economies, combined with high public debt and substantial refinancing needs, could tighten global financial conditions and expose existing financial vulnerabilities.
Fiscal discipline and debt restructuring
The committee called for urgent action to address fiscal weaknesses, urging governments to pursue credible medium-term fiscal frameworks to restore debt sustainability while protecting vulnerable populations and investments that support productivity and growth.
“Fiscal vulnerabilities should be urgently addressed, and consolidation efforts advanced,” the statement said, emphasising the need to rebuild financial buffers without undermining essential development priorities.
On monetary policy, members reaffirmed the importance of price stability and central bank independence, arguing that independent monetary authorities remain essential to policy credibility and keeping inflation expectations anchored.
The committee also pledged continued support for countries undertaking reforms and managing debt vulnerabilities through stronger domestic revenue mobilisation, improved governance and sound macroeconomic policies.
It called for sovereign debt restructuring to become more predictable, timely and coordinated, while urging transparency from all stakeholders, including private creditors.
The statement further encouraged faster implementation of the IMF-World Bank Group’s financing approach to support countries with sustainable debt levels but facing short-term funding difficulties.
Technology and private sector growth
The IMFC also called for reforms to help businesses harness artificial intelligence and digitalisation to improve productivity and drive private sector growth.
They called for reforms that harness these technologies while managing associated economic and financial risks and ensuring that their benefits reach a wider share of the population.
The committee also welcomed the Bangkok Blueprint, which seeks to strengthen digital finance safeguards, improve cyber resilience and support international efforts to combat digital fraud.
On international trade, members called for action to address excessive global imbalances, reduce trade tensions and strengthen supply chains, while emphasising that secure energy flows and freedom of navigation remain essential to economic stability.
The committee reaffirmed its commitment to a strong, adequately resourced International Monetary Fund at the centre of the global financial safety net and urged members to complete domestic approvals for the quota increase under the Fund’s 16th General Review of Quotas.
As governments contend with debt pressures, technological change and geopolitical uncertainty, the statement stressed the importance of coordinated policy action to sustain economic stability and promote broad-based growth. The committee is expected to hold its next meeting in Washington, D.C., in April 2027.
