IMF policy wing calls for cooperation, reforms to support world economy

The policy board of the International Monetary Fund (IMF) has emphasized the need for global cooperation, sound economic policies, and urgent debt reform as the world economy faces heightened uncertainty and structural transformation.

The International Monetary and Financial Committee (IMFC), which concluded its 52nd meeting this week, said the global economy is being transformed due to changing trade dynamics, digitalization, demographic trends, and geopolitical tensions, according to an official statement.

While the board members hailed resilient growth, they also warned of mounting economic strains, including high debt, persistent inflation risks, trade frictions, and increasing climate-related disasters.

“Risks to the outlook are tilted to the downside,” the committee said, citing ongoing wars, fragile debt situations, and rising financial vulnerabilities.

Members expressed commitment to implement prudent fiscal and monetary policies, maintain the independence of central banks, and enhance transparency and stability in financial markets.

Saudi Arabia is the chair of the IMFC for the 2024-2027 term.

Mohammed Aljadaan, Saudi Arabia’s Finance Minister, who participated in the meeting, stressed the importance of policies that build confidence, foster resilience, and safeguard macroeconomic and financial stability. “Ending wars and conflicts and securing lasting peace around the world remains essential for sustainable growth and long-term stability,” Aljadaan said.

The IMFC reaffirmed support for global debt sustainability efforts, particularly in low-income and vulnerable countries. The statement welcomed progress under the G20 Common Framework and urged further steps toward predictable, timely, and coordinated debt restructuring. The committee called on all stakeholders, including private creditors, to improve debt transparency and participate constructively.

Looking ahead, the IMF is expected to deepen its engagement on debt vulnerabilities, especially through the Global Sovereign Debt Roundtable and the upcoming review of the Low-Income Country Debt Sustainability Framework.

Members also expressed support for the IMF’s capacity development initiatives and its continued role at the center of the global financial safety net.

The committee is scheduled to reconvene in April 2026.