The International Monetary Fund's steering committee warned on October 17 in Bangkok that wars, debt and disruption to trade were testing the global economy's resilience. Its chair, Saudi Finance Minister Mohammed Al-Jadaan, urged governments to rebuild financial buffers while protecting vulnerable people and investment that supports growth, according to the IMF and Reuters.
The warning came at the close of the IMF and World Bank annual meetings. Al-Jadaan said conflicts were imposing economic costs as well as a humanitarian toll, while disruption to vital waterways and trading routes threatened energy and food security. He called for credible medium-term budget plans rather than complacency about the economy's ability to withstand shocks.
Artificial intelligence offered productivity gains but could also deepen economic disparities, the IMF briefing said, with low-income countries and fragile states especially exposed. Managing Director Kristalina Georgieva said the meetings combined optimism about resilience and Asia's dynamism with concern over inflation, debt and climate risks. Heavy reliance on the AI investment boom was itself a vulnerability, she warned.
In a separate October 17 statement, European Central Bank President Christine Lagarde said trade tensions and protectionism were weakening confidence. She cited September forecasts for euro area growth of 0.9% in 2026, 1.4% in 2027 and 1.5% in 2028. The statement said September headline inflation reached 3.8%, mainly because of energy, while core inflation rose slightly to 2.5%.
Political divisions also marked the gathering. Reuters reported that nearly half the delegates left during Russian Finance Minister Anton Siluanov's remarks, citing Bundesbank President Joachim Nagel. Al-Jadaan nevertheless said all members supported the chair's statement. He also called for greater support for countries facing short-term financing pressures from wars and high energy prices.
The policy priorities outlined by officials included central bank independence, stronger fiscal reserves and international cooperation. Al-Jadaan backed conditions for private-sector growth and investment, Reuters reported. Georgieva urged cooperation among governments, AI companies and other stakeholders to secure technological benefits while managing risks to people, businesses and economies.
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