IMF committee warns global resilience cannot be taken for granted

The International Monetary and Financial Committee warned after meeting in Bangkok on Saturday that the global economy’s resilience should not be taken for granted. It had weathered the latest in a series of shocks better than expected, but its economic buffers had been eroded, according to an ANP account of the committee’s statement published by Nieuws.nl. Interfax-Ukraine also reported the committee’s warning. [1] [3]

The caution comes in the same week that the IMF raised its forecast for global growth, ANP reported. The stronger outlook does not remove the risk of further disruption: Reuters reported that the committee chair’s statement judged economic risks to be tilted to the downside. [1] [4]

The committee called for greater support for countries facing short-term financing difficulties linked to the spillover effects of wars and high energy prices, according to Reuters. It warned that escalating conflicts and trade tensions could disrupt key trade routes, push up commodity prices and worsen food and energy insecurity. [4]