IMF commits to stronger collaboration with members to address global headwinds

The International Monetary fund has said it is collaborating with 190 countries across the world to facilitate international trade, contribute to high levels of employment and real income, promote exchange stability, and help member countries address balance-of-payments imbalances.

In spite of uncertainty of global outlook, the IMF noted, the world economy has shown resilience, but in most countries near- and medium-term growth outlooks remain subdued and downside risks are elevated.

In its 2023 report, the IMF stated that tightening monetary policy stances to bring down inflation continues to weigh on most economies.

The Bretton Woods Institute noted that the impact of the Russia-Ukraine war has impacted on macro-financial stability, including financial sector stress, adding that though inflation has moderated somewhat, underlying price pressures remain sticky.

“Debt vulnerabilities are elevated, with 60 percent of low-income countries and 25 percent of emerging market economies in or at risk of debt distress. Debt-restructuring processes have been sluggish. Meanwhile, inequality persists within and across countries, and a record 350 million people in 79 countries face acute food insecurity.

“Rising geoeconomic fragmentation risks are making it more difficult to respond to shared challenges, which calls for decisive steps to rebuild trust. The global peace dividend is shrinking, and with it, the resources available to support the vulnerable. Protectionism is on the rise, hampering global trade and eroding hard-won gains from integration. Confronting shared challenges, such as the climate crisis and digitalization, will require overcoming differences and boosting international cooperation,” it said.  

The lender said it is committed to collaborating with its members to find pragmatic solutions to move the global economy onto a sustainable upward trajectory.

“Ensuring sound domestic policies, bolstering global trade, and strengthening institutions will counter uncertainty and fortify macroeconomic resilience. Stepped-up international assistance and solutions to address high debt burdens will support vulnerable countries. Investing in digital technologies will help build a more prosperous and inclusive future. And jointly tackling climate change will sustain our planet,” the report stated.