The International and Monetary Financial Committee met in Washington, DC Friday (October 14), the culmination of the World Bank and IMF Annual Meetings.
The group’s Chairman Nadia Calvino of Spain released a statement summarizing negotiations and talks around the 46th Meeting that the IMFC’s members see the global economy at a delicate moment.
“The global recovery is slowing amidst high uncertainties. Hit by multiple shocks, the global economy is facing significant challenges, and the outlook is more difficult than in April and subject to downside risks. More than two years of pandemic, followed by Russia’s war against Ukraine, are weighing heavily on economic activity with significant impact on livelihoods,” the statement opened.
“Inflation is at multi-decade highs, debt is elevated, food and energy security risks are increasing, supply-chain and trade disruptions persist, and financial conditions are tightening, while capital flow and exchange rate volatility have increased,” the statement continued.
The IMFC was unable to reach consensus on a communique due to resistance by the Russian delegation.
“The global economy is subject to increased fragmentation risks. The steep rise in the cost of living is affecting everyone, with the most vulnerable hit the hardest. These developments come on top of intensifying inequality, debt vulnerabilities, and climate shocks,” the statement read.
The group called for cohesive action to tackle the greatest problems.
“Urgent multilateral action is needed to address shared challenges. We will further step up efforts to overcome the food crisis in coordination with international organizations and development partners and, in this context, will focus on supporting affected countries in protecting vulnerable populations from the impact of food price shocks and on lifting of export restrictions on food and fertilizers. We will continue to support vulnerable countries as they address their pressing financing needs and debt vulnerabilities,” it concluded.
For the full statement click Here.