Members of the International Monetary Fund expressed concern on Friday, October 17, about mounting pressures and uncertainty stemming from escalating trade tensions, advances in artificial intelligence, and shifts in global markets. However, the statement from the steering committee offered cautious optimism regarding the resilience of global growth and the continued decline in inflation rates.
The statement from the Chair of the International Monetary and Financial Committee, which represents the economies of 191 member countries, highlighted negative risks arising from slowing economic expansion, rising debt levels, extreme climate events, excessive global imbalances, and ongoing conflicts.
Saudi Finance Minister Mohammed Al-Jadaan, who also chairs the IMF’s steering committee, stated that major shifts in trade policies and other issues are reshaping global markets and policy frameworks, increasing uncertainty. He noted that these changes, along with transformative forces such as digitalization and demographic shifts, present both challenges and opportunities.
The statement acknowledged that disinflation trends will vary across countries. IMF executives indicated earlier in the week that nations imposing tariffs, such as the United States, may face persistently higher inflation, while some Asian economies, including China, could confront deflationary risks.
The committee reiterated the importance of independent central banks in maintaining policy credibility. It also called for addressing financial vulnerabilities by strengthening oversight of systemic risks linked to artificial intelligence, non-bank financial institutions, and digital assets, while harnessing the benefits of financial and technological innovation.
— news from CNBC عربية