ECOSOC Financing for Development Forum Special High-Level Meeting with the Bretton Woods Institutions, the WTO and UNCTAD
IMF News, April 16, 2019
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- Published: April 16, 2019
Economic Outlook
- The global economy is described as being "at a delicate moment."
- A year prior, economic activity was accelerating in almost all regions of the world; one year later, "much has changed."
- The global expansion is continuing but "at a slower pace since the IMF’s Annual Meetings in October."
- The IMF is "projecting a slowdown in growth for 70 percent of the world economy."
- Growth is expected to firm up again in 2020.
- The expected rebound is subject to several downside risks, including:
- trade tensions;
- policy uncertainty;
- geopolitical risks.
Policy Priorities of Member Countries
- IMFC members agreed to act promptly to protect the expansion.
- The communiqué commits IMFC members to take necessary actions at the national and international level to support the recovery and build resilience.
- National-level policy guidance:
- Fiscal policy should remain flexible and growth-friendly, rebuild buffers and strike the right balance between debt sustainability, supporting demand, and safeguarding social objectives.
- Monetary policy should ensure that inflation is on track toward targets, and inflation expectations remain well-anchored.
- It will be important to tackle financial stability risks, if they emerge, using all available tools, including macroprudential tools.
- International-level priorities:
- Strengthen international cooperation and frameworks to confront broader global challenges, including trade, global imbalances, international corporate taxation, debt vulnerabilities, climate change and cyber risks.
- Support efforts toward achieving the 2030 Sustainable Development Goals (SDGs).
How the IMF Can Help
- IMFC members welcomed the IMF Managing Director’s Global Policy Agenda, titled “Joint Responsibility, Shared Rewards.”
- The IMF is working on a more integrated policy framework that considers interactions between monetary, exchange rate, macroprudential, and capital flow management policies.
- Governance and corruption:
- The IMF is enhancing its engagement on governance, including corruption, through a new governance framework.
- The IMF estimates curbing corruption could save up to $1 trillion in global tax revenue annually.
- Social spending and inclusion:
- The IMF Board will soon consider how the IMF can more systematically engage on social spending issues.
- IMF staff have consulted widely with stakeholders, including UN agencies such as the ILO and UNICEF, as input to this process.
- Fragile and conflict-affected states:
- The IMF will enhance the effectiveness of engagement with fragile and conflict-affected states.
- Tax capacity and collaboration:
- The IMF will continue to help countries build their tax capacity and work closely with other partners (WB, UN, OECD) through the Platform for Collaboration on Tax.
- Climate change and resilience:
- In line with its mandate, the IMF will continue to provide guidance on members’ implementation of climate change mitigation and adaptation strategies.
- The IMF will support resilience building in countries vulnerable to natural disasters, particularly small states.
- Overall commitment:
- The Fund is committed to helping countries meet the 2030 SDGs through policy advice and capacity development.
- The IMF Managing Director has called for "a new multilateralism for the 21st century that is more inclusive and ensures that all global stakeholders take collective responsibility for addressing our shared challenges."
Statement by Sabina Bhatia, Deputy Secretary of the IMF; New York; April 16, 2019.