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Investing.com -- International Monetary Fund member countries raised concerns on Friday about growing trade tensions, artificial intelligence advances, and shifts in global markets, while maintaining hope for resilient growth and continued disinflation.
The International Monetary and Financial Committee (IMFC), representing the IMF’s 191 member economies, highlighted downside risks including low economic growth, high debt, extreme weather events, excessive global imbalances, and ongoing wars in its chair’s statement.
"Major policy shifts in trade and other areas are reconfiguring global markets and policy frameworks, heightening uncertainty," said Mohammed Al-Jadaan, IMFC Chair and Saudi Arabia’s finance minister.
The statement acknowledged that while these changes, along with digitalization and demographic shifts, present challenges, they also create opportunities.
IMF officials noted that disinflation trends would vary across countries. Nations implementing tariffs, such as the United States, could face higher inflation for longer periods, while some Asian economies like China risk deflation.
The committee emphasized the importance of independent central banks maintaining policy credibility, stating that central banks remain committed to price stability and will adjust policies based on data in a well-communicated manner.
The statement also called for addressing financial vulnerabilities by enhancing surveillance of systemic risks from artificial intelligence, non-bank financial institutions, and digital assets, while leveraging the benefits of financial and technological innovation.
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