IMF Policy Advice

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A core responsibility of the IMF is overseeing the international monetary system and monitoring members’ economic and financial policies, an activity known as surveillance.
Surveillance occurs at the global, regional, and country levels to identify potential risks to stability and recommend policy adjustments to sustain economic growth and promote financial and economic stability.
IMF policy advice aims to help member countries stabilize their economies, prevent financial crises, and improve living standards.
Factsheet last updated in July 2024.

IMF staff monitor the economic and financial policies of member countries and provide policy advice through surveillance at bilateral (country), regional, and multilateral (global) levels.
Surveillance identifies potential risks and recommends appropriate policy adjustments to sustain growth and promote financial stability.
The process involves comprehensive discussions with government and central bank officials, and with members of the legislature, representatives from business, labor unions, and civil society, to evaluate economic policies and outlooks.

Vigilant monitoring is essential to identify risks that may require remedial policy adjustments.
International cooperation is critical because the problems or policies of one country can affect many others; IMF membership, which includes nearly all the world’s nations, can facilitate such cooperation.
IMF monitoring focuses on bilateral surveillance (individual countries) and multilateral surveillance (the global economy).

IMF monitoring typically involves annual visits to member countries.
Discussions focus on exchange rate, monetary, fiscal, and financial policies, as well as structural reforms.
Discussions also extend to developments critical for economic and financial stability, such as climate change and digitalization.
After evaluation, IMF staff present a report to the Executive Board for discussion; the Board’s views are provided to the country’s authorities, concluding the Article IV Consultation.
In the interest of transparency, most member countries publish the staff report, accompanying analysis, and the views of the IMF Executive Board in a public statement.

The IMF monitors regional and global economic trends and analyzes the impact of member country policies on neighboring countries and the global economy.
The IMF issues periodic reports that analyze these trends and potential spillovers from policies of large economies.

World Economic Outlook: provides detailed analysis of the global economy and its growth prospects, including macroeconomic effects of global financial turmoil and potential global spillovers from economic, fiscal, and monetary policies of large economies such as the United States, China, and the euro area.
Global Financial Stability Report (GFSR): assesses global capital markets, financial imbalances, and vulnerabilities that pose potential risks to financial stability.
Fiscal Monitor: updates medium-term fiscal projections and assesses developments in public finances.
External Sector Report: analyzes the external positions of 29 of the world’s largest economies, plus the euro area; assesses current accounts, exchange rates, external balance sheet positions, capital flows, and international reserves.
Regional Economic Reports: provide detailed analysis of major regions of the world.
Global Policy Agenda: issued twice a year; pulls together key findings and policy advice from multilateral reports and proposes a future policy agenda for the IMF and its members.

The IMF cooperates closely with groups including the Group of Twenty advanced and emerging market economies.
The IMF supports the G20’s efforts to sustain international economic cooperation through its mutual assessment process and analyzes member country policies for consistency with sustained and balanced global growth.

The IMF periodically reviews its surveillance work to reflect changes in the global economy.
The most recent Comprehensive Surveillance Review concluded in 2021 and provided a blueprint for global surveillance over the next five to ten years.
The review identified four priorities to better support members:
- Confronting risks and uncertainties
- Preempting and mitigating spillovers
- Fostering economic sustainability
- Adopting a more unified approach to policy advice
At the member country level, Article IV Consultation will continue to cover fiscal, monetary, exchange rate, and financial issues.
The IMF’s forward-looking surveillance approach aims to give policy advice that is more timely and targeted as climate change, digital technology, inequality, and global events such as a pandemic shape a changing world.