International Monetary Fund member countries called for increasing support to countries that are facing short-term financing challenges caused by negative spillovers from wars and high energy prices, and said economic risks remain tilted to the downside.
– And while there has been a boost to investment and trade from “advanced intelligence technologies”, they also carried risks, the chair of the International Monetary and Financial Committee said in a statement after a meeting in Bangkok.
– “Escalating conflicts and trade tensions could further disrupt critical trade routes, exacerbate commodity price pressures, including in refined energy products, and worsen energy and food security,” said the statement issued by Saudi Finance Minister Mohammed Al-Jadaan, the chair of the IMFC.
– The IMFC is the main steering committee for the 191-member crisis lender.
– Al-Jadaan told Reuters that the language of the statement was agreed by all members.
– Earlier this week, the United States was pressing fellow IMF members to rename artificial intelligence as “super intelligence” in the statement, in line with US President Donald Trump’s preferred name for the technology, a senior US Treasury official told Reuters.
– The final version of the chair’s statement contained no reference to artificial intelligence.
– It said the uncertain impact of “advanced intelligence technologies”, along with rising bond yields in major economies that spill over to highly indebted economies, “could amplify macro-financial vulnerabilities.”
– “Rapid technological change, demographic shifts, more frequent extreme weather events and natural disasters, and geoeconomic fragmentation are compounding policy tradeoffs,” the statement said.
– The member economies agreed to support countries that undertake reforms and address debt vulnerabilities, with specific attention to low-income and vulnerable middle-income countries and conflict-affected states.
– “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, noting that several members had provided assurances of support to the IMF’s Poverty Reduction and Growth Trust, which supports poor and developing countries.