WASHINGTON (Reuters) -International Monetary Fund member countries voiced concerns on Friday about the strains and uncertainty created by growing trade tensions, advances in artificial intelligence and shifts in global markets, but a steering committee statement expressed hope for resilient growth and continued disinflation.
The chair’s statement from the International Monetary and Financial Committee, which represents the crisis lender’s 191 member economies, also flagged downside risks from low economic growth, high debt, extreme weather events, excessive global imbalances and wars.
“Major policy shifts in trade and other areas are reconfiguring global markets and policy frameworks, heightening uncertainty,” said the statement from IMFC Chair Mohammed Al-Jadaan, who is Saudi Arabia’s finance minister.
“These changes, as well as transformative forces such as digitalization and demographic shifts, bring challenges but also opportunities.”
The statement noted that disinflation would have variations across countries. IMF executives this week noted that countries imposing tariffs such as the U.S. faced potentially higher inflation for longer, while some Asian economies such as China risked deflation.
The statement also stressed the need for independent central banks to maintain policy credibility.
“Central banks remain strongly committed to maintaining price stability, in line with their respective mandates, and will continue to adjust their policies in a data-dependent and well-communicated manner,” the statement said.
It also called for tackling financial vulnerabilities and risks “by strengthening surveillance of systemic risks stemming from AI, non-bank financial institutions and digital assets, while harnessing the benefits of financial and technological innovation.”
(Reporting by David Lawder and Andrea Shalal; Editing by Paul Simao)
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