IMF urges support for economies facing shocks

Bangkok The International Monetary Fund's member countries have called for increased financial support for economies facing short-term financing difficulties caused by geopolitical conflicts, rising energy prices and other external shocks, warning that global economic risks remain tilted to the downside. The call came in a statement issued after a meeting of the International Monetary and Financial Committee in Bangkok. Saudi Finance Minister Mohammed Al-Jadaan, who chairs the committee, said the statement's language had been agreed upon by all members. The committee warned that escalating conflicts and trade tensions could disrupt critical trade routes, increase commodity prices and undermine energy and food security. It also highlighted risks arising from higher bond yields in major economies, which can spill over into highly indebted countries and intensify financial vulnerabilities. The statement noted that advances in emerging technologies had supported investment and trade but could also create economic risks. It said rapid technological change, demographic shifts, increasingly frequent extreme weather events, natural disasters and geopolitical fragmentation were complicating policy decisions. The final statement referred to "advanced intelligence technologies" but did not explicitly mention artificial intelligence. Earlier in the week, the United States had urged other IMF members to use the term "super intelligence", reflecting terminology preferred by President Donald Trump. The committee also agreed to support countries undertaking reforms and addressing debt vulnerabilities, particularly low-income economies, vulnerable middle-income countries and states affected by conflict. "We encourage increasing support to countries with sustainable debt and strong reform and growth enhancing agenda, but facing short-term financing challenges," the statement said.