Shafaq News / According to informed sources cited by Reuters on Friday, the International Monetary and Financial Committee (IMFC) within the International Monetary Fund (IMF) failed to reach necessary consensus to draft a joint statement. Instead, the committee opted for its chair to release a statement acknowledging the negative repercussions of conflicts in Europe and the Middle East on the global economy.
In a statement, Saudi Minister of Finance and IMFC Chair, Mohammed Al-Jadaan, expressed that "committee members discussed the economic and financial implications of current conflicts, including the war in Ukraine, the humanitarian crisis in Gaza, and disruptions in shipping in the Red Sea."
The statement further noted that "while recognizing that the IMFC is not the platform for resolving geopolitical and security issues and that such discussions will take place in other forums, committee members acknowledged that these situations have significant implications for the global economy. The current era must not be defined by wars and conflicts."
Al-Jadaan explained that the fragmentation resulting from geopolitical tensions negatively affects the global economy, but some countries have benefited from diversifying supply chains amidst these circumstances.
Meanwhile, Managing Director of the IMF, Kristalina Georgieva, emphasized that "discussions during this week's spring meetings of the IMF and World Bank in Washington focused on boosting global economic growth."
She added, "What we want is a world where growth is stronger, living standards are higher, and low-income countries do not collapse. A world more resilient in facing shocks that will continue in the future."
Georgieva urged countries to "complete the mission" regarding controlling inflation and continuing to rebuild the reserves depleted by the COVID-19 pandemic and subsequent cost-of-living crisis.