October 25, 2024 — Finance ministers and central bank officials from around the world convened for the 50th International Monetary and Financial Committee (IMFC) meeting in Washington, D.C., where global economic resilience and debt management took center stage. With representatives from major economies and emerging markets, the committee reiterated its commitment to securing economic stability and addressing long-standing debt vulnerabilities.
Balancing Low Growth and High Debt
The IMFC emphasized the urgent need to break free from the current “low growth-high debt” economic path, aiming to foster stability and boost growth. Ministers noted that while global growth has been steady and inflation is moderating, economic activity remains uneven across regions. Key priorities include fiscal consolidation and more effective debt management to enhance stability and prepare for future uncertainties.
Inflation and Financial Sector Vigilance
While inflation has shown signs of easing, officials stressed that central banks must remain vigilant. The committee underscored the importance of data-driven monetary policies and transparent communication, with a focus on returning inflation to target levels. Financial regulators were also urged to closely monitor risks, particularly within property markets, and to ensure the completion of ongoing regulatory reforms.
Debt Transparency and Assistance for Emerging Economies
The IMFC recognized the burden of global debt, which has reached historic highs, and the need for systemic debt management. In light of growing debt pressures, the committee commended progress under the G20’s Common Framework and encouraged ongoing support for struggling economies, including through initiatives like the IMF’s Resilience and Sustainability Trust.
Long-term Goals: Climate and Digital Transition
The committee reaffirmed its dedication to global cooperation, calling for structural reforms to boost productivity, enhance labor participation, and support transitions in climate and digital technologies. The IMF’s cooperation with the World Bank on pandemic preparedness and climate initiatives was highlighted as a critical part of the organization’s long-term support strategy.
Expanding IMF Representation and Capacity
Reflecting evolving global dynamics, the IMFC welcomed a new Executive Board seat for Sub-Saharan Africa and Liechtenstein’s membership, aiming to enhance representation. Members expressed continued support for the IMF’s development and lending programs, especially for low-income countries facing balance-of-payment challenges.
Looking forward, the committee stressed the need for proactive fiscal and policy reforms to ensure sustainable economic recovery, calling on countries to avoid protectionist measures and enhance cooperation for global resilience.
