IMF International Monetary And Financial Committee Deputies Convene In Diriyah To Discuss Global Economic Stability

The third meeting of the IMF International Monetary and Financial Committee (IMFC) Deputies, chaired by Saudi Arabia, commenced in Diriyah. Minister of Finance Mohammed Aljadaan highlighted the IMF's efforts during tough times and stressed collaboration for global financial stability and inclusive growth. He welcomed a new IMFC member from Africa, marking a first in the committee's history, and emphasized Saudi Arabia's commitment to amplifying emerging markets' voices.

During a high-level panel titled "Breaking from The Low-Growth, High-Debt Path," participants discussed the global economy's turning point marked by uncertainty. This uncertainty affects capital flows in both advanced and developing economies. They noted that global growth remains below historical levels, with high debt hindering investments in infrastructure and social safety nets, weakening responses to economic shocks.

Disruptive forces like artificial intelligence, digitalization, and demographic changes were identified as both opportunities and risks for the global economy. These factors could significantly impact future economic landscapes, requiring careful navigation to harness benefits while mitigating potential threats.

The second panel discussion, "Strengthening the Global Financial Safety Net," focused on the IMF's crucial role in assisting countries with balance-of-payments issues. Participants explored ways to enhance cooperation between the IMF and regional financial institutions to bolster global financial stability. This collaboration is vital for developing effective programs that ensure economic resilience.

Dr. Kristalina Georgieva, Managing Director of the IMF, expressed gratitude for Saudi Arabia’s support and leadership within the IMFC. She stated that despite significant policy changes globally, "the IMF's mission to foster macroeconomic and financial stability remains just as essential as it was 80 years ago. Our 191 member countries can rely on the IMF as a trusted advisor."

Saudi Arabia's Leadership Role

The Kingdom's leadership of the IMFC underscores its dedication to promoting multilateralism and supporting regional and global economic growth. As chair, Saudi Arabia plays a pivotal role in addressing challenges facing the global economy through policy recommendations aimed at ensuring stability.

This meeting marks a historic moment as it is the first time an official IMFC gathering has been held in Saudi Arabia. The discussions are crucial for deliberating on matters concerning global economic growth and stability, reinforcing Saudi Arabia’s influential position on the international stage.

With inputs from SPA