IMF members call for more support amid war shocks, 'advanced intelligence' risks

International Monetary Fund member countries are urging increased support for nations grappling with short-term financing challenges stemming from war-related spillovers and high energy prices. In a statement issued after a meeting in Bangkok, the chair of the International Monetary and Financial Committee (IMFC) warned that economic risks still predominantly lean towards the downside.

The chair, Saudi Finance Minister Mohammed Al-Jadaan, emphasized that while "advanced intelligence technologies" have spurred growth in investment and trade, they also present significant risks. Escalating conflicts and trade tensions could disrupt critical trade routes, intensify commodity price pressures, including refined energy products, and worsen energy and food security.

Al-Jadaan, speaking to Reuters, stated that all IMFC members supported the chair's position, despite a walkout earlier by the United States, which had pushed for the term "super intelligence" to replace "advanced intelligence technologies" in the statement. The final version of the statement, however, did not include this term.

The statement highlighted the uncertain impact of advanced intelligence technologies alongside rising bond yields in major economies, which could further strain highly indebted nations if passed on. It also noted that rapid technological change, demographic shifts, extreme weather events, and natural disasters are adding to policy tradeoffs.

IMF member economies agreed to extend support to countries implementing reforms and addressing debt vulnerabilities, with particular focus on low-income and vulnerable middle-income countries, as well as conflict-affected states. They encouraged increasing assistance to these countries, provided they have sustainable debt and a strong reform and growth-enhancing agenda.