International Monetary Fund member countries have called for stronger financial support for economies facing short-term pressure from wars, high energy prices and disruptions to global trade.
The International Monetary and Financial Committee, the IMF’s main policy advisory body, said economic risks remain tilted to the downside despite the global economy showing resilience.
Its October 17 statement highlighted conflicts, energy and food security risks, trade tensions, high debt and rapidly advancing artificial intelligence as major challenges facing policymakers.
The committee also backed stronger support for low-income and conflict-affected countries undertaking economic reforms.
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Wars and Energy Shocks Put Vulnerable Economies Under Pressure
The committee said ongoing wars are creating both humanitarian and economic costs.
Disruptions to trade routes and critical waterways can push up the prices of oil, refined fuels, food and other essential goods.
Those shocks can be particularly difficult for countries that rely heavily on imported energy.
A sudden rise in fuel costs can weaken currencies, increase inflation and force governments to spend more on subsidies or other relief measures.
Countries already carrying high debt have fewer resources available to absorb such shocks.
IMFC Chair and Saudi Finance Minister Mohammed Al-Jadaan said the global economy has remained resilient but warned there is “no room for complacency”.
The committee called for support to countries experiencing temporary financing problems because of negative spillovers from global conflicts.
Such assistance can come through IMF lending facilities or special programmes designed for countries with limited access to international financial markets.
IMF Wants More Resources for Poorest Countries
Members also called for stronger contributions to the IMF’s Poverty Reduction and Growth Trust.
The trust provides concessional financing to low-income countries, usually on more favourable terms than standard market borrowing.
That can become particularly important when poor countries are hit by external shocks they did not create.
A rise in global oil prices, for example, can suddenly increase import bills even when domestic economic policy has not changed.
Similarly, disruptions to shipping routes can push up transport and food costs.
The committee said support should also focus on countries carrying out economic reforms intended to restore stability and improve long-term growth.
Fragile and conflict-affected states remain among the most vulnerable because they often have weaker institutions, limited fiscal buffers and restricted access to private capital.
The IMF has repeatedly warned that rising debt-servicing costs are reducing the amount many developing economies can spend on infrastructure, healthcare and social programmes.
AI Added to List of Financial Risks
Artificial intelligence also appeared in the committee’s final statement.
The IMFC referred to “advanced intelligence technologies”, avoiding the phrase “super intelligence” that US officials had reportedly pushed for during negotiations.
The committee acknowledged that AI can support productivity, investment and trade.
But it also warned that the technology could create macro-financial risks.
Those risks can emerge if AI investment becomes excessively concentrated or if expectations about future profits push asset prices too high.
A sharp reversal in investor confidence could then create losses across financial markets.
The IMF has separately warned that rapid AI investment, rising corporate borrowing and elevated technology valuations could amplify a market correction.
AI could also deepen economic inequality if productivity gains are concentrated in wealthier countries with greater access to computing infrastructure, electricity and skilled workers.
For low-income countries, that creates a second challenge.
They may have to manage the economic consequences of AI while lacking the infrastructure needed to benefit from it.
Global Cooperation Becomes Harder as Political Divisions Deepen
The IMF meetings in Bangkok also exposed significant political divisions among member countries.
Delegates from several countries reportedly walked out when Russian Finance Minister Anton Siluanov addressed the committee, highlighting continuing tensions over the war in Ukraine.
Despite those divisions, IMF members ultimately reached consensus on a joint statement.
That matters because the IMF’s steering committee traditionally operates by consensus rather than formal voting.
The final agreement therefore reflects an attempt to maintain cooperation even as wars, trade disputes and geopolitical rivalry make global coordination increasingly difficult.
The IMF is also urging governments to preserve central bank independence, rebuild fiscal buffers and encourage private-sector investment.
The wider message from the Bangkok meetings is that the world economy has avoided a major downturn so far, but the number of potential shocks is increasing.
High debt, geopolitical conflict, energy insecurity and fast-moving technological change are increasingly interacting rather than developing separately.
For vulnerable economies, a shock in one area can quickly create pressure elsewhere.
What this means for you:
War and energy disruptions can affect inflation, interest rates and investment even far from the conflict itself. The IMF is pushing for stronger financial buffers so vulnerable economies can absorb those shocks without deeper economic crises.
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