The International Monetary and Financial Committee (IMFC), chaired by Muhammed Aljadaan, Saudi Arabia’s Minister of Finance, on Friday in Washington DC underscored the urgent need for global economic policies aimed at achieving a soft landing and breaking away from the current low growth-high debt trajectory of member countries of the International Monetary Fund.
A soft landing relates to a slowdown in economic growth that ends without countries going into recession. In such cases, central banks like the Bangko Sentral ng Pilipinas seek to adjust policy rates enough to allow liquidity in the system without stoking high inflation and causing an economic downturn.
Aljadaan’s remarks were made during a session of the IMF Council, where he expressed strong support for the IMF’s initiatives to enhance surveillance, expand lending capabilities, and improve representation for emerging economies.
Aljadaan acknowledged the resilience of global economic activity but pointed out significant disparities among nations, exacerbated by ongoing conflicts that pose substantial risks. He emphasized the critical role of fiscal consolidation and strategic reforms in ensuring debt sustainability and stimulating growth, urging countries to closely monitor financial sector risks and implement structural reforms to enhance economic performance.
The Minister reaffirmed Saudi Arabia’s commitment to international collaboration in addressing global debt vulnerabilities, advocating for timely and coordinated debt treatments under the G20 Common Framework. He expressed support for the IMF’s efforts to strengthen capacity development and highlighted the necessity of a robust financial safety net centered around the Fund.
As the IMF approaches its 80th anniversary, Aljadaan looks forward to engaging discussions focused on equipping the institution to tackle future challenges and enhancing representation for emerging economies, particularly in Sub-Saharan Africa. His statements reflect a strong commitment to multilateral cooperation in fostering global prosperity.
