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The International Monetary Fund (IMF) has urged governments to maintain credible fiscal and monetary policies to preserve price stability, warning that an increasingly uncertain global environment demands stronger economic resilience and international cooperation.
WASHINGTON — The International Monetary Fund (IMF) has called on governments worldwide to remain focused on maintaining price stability and strengthening confidence in fiscal and monetary policy as the global economy navigates a period of heightened geopolitical and economic uncertainty.
Speaking at an event hosted by the Atlantic Council, the IMF’s newly appointed Director of Strategy, Christian Mumssen, said policymakers must continue pursuing sound economic management to safeguard growth while responding to a series of overlapping global challenges.
He noted that the world economy has experienced an unprecedented succession of shocks in recent years, including the COVID-19 pandemic, the global cost-of-living crisis, rising trade tensions and conflicts in Ukraine and the Middle East.
“The global economy has proved remarkably resilient in the face of these forces. But the sheer scale of what is under way creates an exceptionally high degree of uncertainty—and we should expect the unexpected,” Mumssen said.
Credible Policies Key to Economic Stability
Mumssen emphasised that governments should preserve confidence in both fiscal and monetary institutions by maintaining responsible public finances and ensuring inflation remains under control.
He identified several policy priorities, including:
- Maintaining sustainable public debt levels;
- Preserving price stability through credible monetary policy;
- Supporting employment and long-term economic growth;
- Strengthening resilience against supply chain disruptions; and
- Preparing economies for future geopolitical and economic shocks.
He cautioned that recurring disruptions to global supply chains could continue to place upward pressure on prices, making inflation management an ongoing challenge for policymakers.
Adapting to a Rapidly Changing Global Economy
Beyond current economic pressures, Mumssen highlighted the accelerating pace of technological change as another major force reshaping the global economy.
He pointed to the rapid development of artificial intelligence (AI) and digital finance, noting that technological transformation is advancing faster than many policymakers had anticipated.
According to the IMF official, governments should ensure these innovations contribute to inclusive economic growth, while also strengthening regulatory frameworks capable of supporting a more digital global economy.
He added that today’s policy environment is particularly complex because multiple structural changes—including technological transformation, geopolitical fragmentation and shifting global economic relationships—are occurring simultaneously.
Renewed Call for International Cooperation
Mumssen also expressed concern that international cooperation is becoming more difficult at a time when coordinated action is increasingly necessary.
He warned that the evolution towards a more fragmented and multipolar global order could complicate efforts to address common challenges such as climate change, financial stability, technological governance and economic resilience.
“The problem is that just when massive structural challenges and a new technological revolution would call for greater international cooperation, the global governance system is fragmenting,” he said.
The IMF official encouraged member countries to continue working closely with the Fund in developing policy solutions that promote stability, resilience and sustainable economic growth.
Why It Matters
The IMF’s message carries particular significance for developing and emerging economies, many of which continue to face high inflation, elevated debt burdens and exposure to global supply shocks. For African countries, maintaining macroeconomic stability while investing in growth, infrastructure and digital transformation will remain central to attracting investment and improving living standards. As geopolitical tensions and technological change reshape the global economy, sound economic governance is likely to become an even more important pillar of long-term development.
Source: Reuters
Reporting: Andrea Shalal.
Editing: Doina Chiacu and Chizu Nomiyama.