The International Monetary Fund (IMF) has warned that the global economy faces growing risks from geopolitical conflicts, trade tensions, energy supply disruptions and mounting public debt, despite economic growth proving stronger than expected. In a statement issued after its 54th meeting in Bangkok, the International Monetary and Financial Committee (IMFC) cautioned that the current economic resilience should not be taken for granted.
Chaired by Saudi Arabia’s Finance Minister Mohammed Al-Jadaan, the committee highlighted the far-reaching economic consequences of ongoing conflicts, including disruptions to international supply chains, rising commodity prices and increasing pressure on vulnerable economies. It warned that escalating geopolitical tensions could worsen energy and food insecurity, with low-income countries likely to bear the heaviest burden.
The IMF committee also raised concerns over financial stability, pointing to rising sovereign bond yields, high public debt levels and growing refinancing pressures. These challenges could make borrowing more expensive, particularly for countries with limited access to international capital markets. The committee urged governments to strengthen fiscal frameworks, address economic vulnerabilities and protect disadvantaged communities while maintaining investment essential for long-term growth.
Emphasising the need for secure and resilient energy supplies, the IMFC reiterated its commitment to improving sovereign debt restructuring, particularly for low-income and vulnerable middle-income economies. It urged borrowers and lenders to improve transparency and make debt restructuring arrangements more predictable. The IMF’s warning underscores a critical challenge for policymakers: sustaining economic growth while preparing for a more uncertain global environment shaped by geopolitical instability, financial vulnerabilities and rapid technological change.
