Bagkok: Wars, escalating trade tensions and rising public debt pose significant risks to the global economy, the International Monetary and Financial Committee (IMFC) has warned, urging countries to strengthen financial stability and international cooperation.
The concerns were discussed at the committee’s 54th meeting in Bangkok. While global economic growth has proved more resilient than expected, the committee cautioned that financial stability cannot be taken for granted.
Ongoing conflicts are causing substantial human and economic losses, with poorer countries disproportionately affected. Geopolitical tensions could disrupt trade routes and supply chains, while rising energy, food and commodity prices may place additional pressure on vulnerable economies.
The committee also flagged growing public debt and rising sovereign bond yields as challenges to financial stability. It noted that investments in advanced artificial intelligence could boost productivity, although their overall economic impact remains uncertain.
The IMFC stressed the importance of central bank independence in controlling inflation and implementing credible monetary policies. It also called for measures to protect vulnerable sections of society amid economic uncertainty.
Strengthening cybersecurity and preventing digital fraud were identified as important priorities. The committee further emphasised the need to enhance international trade cooperation to address disruptions and support economic resilience.
On debt-related concerns, the committee advocated facilitating debt relief for low-income countries and improving transparency in debt restructuring processes.
