Al-Jadaan from Washington: We Must Be Vigilant, Prepared to Confront Challenges Ahead

Saudi Finance Minister Mohammed Al-Jadaan, Chairman of the International Monetary and Finance Committee (IMFC), said that the war in Ukraine, the crisis in Gaza, and the obstruction of shipping in the Red Sea have repercussions on the global economy.

Al-Jadaan’s words came during a joint press conference with the IMF Managing Director, Kristalina Georgieva, at the end of the 49th meeting of the Fund’s International Monetary and Finance Committee (IMFC), on the sidelines of the IMF spring meetings currently taking place in Washington.

The Saudi minister has been chosen to chair the IMFC for a period of three years as of Jan. 4, 2024.

“While recognizing the IMFC is not the forum to resolve geopolitical and security issues and these issues will be discussed in other fora, IMFC members acknowledged that these situations have significant impacts on the global economy. Today’s era must not be of war and conflict,” Al-Jadaan said, in a statement published on behalf of the Committee.

He continued: “A soft landing for the global economy appears to be drawing closer. Economic activity has proved more resilient than expected in many parts of the world, though it continues to diverge across countries. However, medium-term global growth prospects remain weak. Ongoing wars and conflicts continue to impose a heavy burden on the global economy.”

The statement stressed that although inflation has decreased in most regions, due to the decline in supply shocks and the effects of tight monetary policy, its persistence calls for caution.

“Against this background, our policy priorities are to achieve price stability, strengthen fiscal sustainability, and safeguard financial stability, while promoting inclusive and sustainable growth. We will proceed with rebuilding fiscal buffers, carefully tailoring actions to country-specific circumstances, while protecting the most vulnerable and growth-enhancing investment,” the IMFC chair underlined.

The Committee also stressed the importance of international cooperation to improve the resilience of the global economy and the international monetary system, and to work collectively to support climate and digital transformations, including artificial intelligence, taking into account the specific circumstances of each country.

It added: “We reiterate our commitments on exchange rates, addressing excessive global imbalances, and governance, and our statement on the rules-based multilateral trading system, as made in April 2021, reaffirming our commitment to avoid protectionist measures. We will also continue working together to strengthen the global financial safety net and address global debt vulnerabilities.”

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