The global economy has demonstrated resilience despite mounting international challenges, but policymakers must remain alert to emerging risks, the head of the International Monetary Fund’s steering committee has warned, as divisions over Russia’s war against Ukraine triggered a walkout at a meeting in Bangkok.
Saudi Finance Minister Mohammed Al-Jadaan, who chairs the International Monetary and Financial Committee (IMFC), made the remarks on Saturday, October 17, at the conclusion of the IMF and World Bank annual meetings, which attracted more than 18,000 participants.
The meetings were overshadowed by diplomatic tensions after delegates from several countries left the room when Russian Finance Minister Anton Siluanov addressed the committee in Russian.
Al-Jadaan acknowledged the walkout but emphasised that members had ultimately agreed on the committee chair’s statement, despite their disagreements over the conflict.
Speaking to Reuters, he said the meeting had achieved its objective, pointing to the unanimous agreement on the final statement as evidence that cooperation remained possible.
At his closing news conference, Al-Jadaan described the global economy as showing “remarkable resilience” despite continuing wars, threats to energy and food supplies, high public debt and risks associated with the rapid development of artificial intelligence.
However, he warned that governments and financial authorities should not underestimate the challenges confronting the global economy.
“The message from the IMFC members is clear: there is no room for complacency,” Al-Jadaan said.
The committee’s statement warned that escalating conflicts and trade tensions could disrupt critical shipping routes, increase commodity prices, particularly for refined energy products, and worsen food and energy security.
Al-Jadaan urged governments to rebuild fiscal reserves while protecting vulnerable populations and preserving investments that support economic growth. He also stressed the importance of maintaining central bank independence and encouraging private-sector investment.
He added that international cooperation remained essential to addressing excessive global economic imbalances and reducing trade tensions.
IMF Managing Director Kristalina Georgieva described the meetings as productive but acknowledged growing anxiety among member countries over widening economic disparities.
She said many lower-income countries that were not significantly involved in the artificial intelligence value chain feared they were falling behind as technological developments reshaped the global economy.
Despite repeated economic shocks and increasing geopolitical fragmentation, Georgieva said the discussions had demonstrated a continued willingness among countries to pursue dialogue and international cooperation.
Delegates protest during Russian minister’s address
The diplomatic divisions became particularly visible when Siluanov began addressing the IMFC, prompting delegates from several countries to leave the meeting room.
Bundesbank President Joachim Nagel said nearly half of the delegates had participated in the walkout, describing it as a strong signal of solidarity with Ukraine.
Nagel said ending Russia’s war against Ukraine would benefit the global economy and praised the officials who had left the session.
The Bank of England confirmed that Governor Andrew Bailey was among those who joined the walkout. The demonstration came as Britain prepares to host the Group of 20 (G20) in 2027.
Ukraine’s central bank governor, Andriy Pyshnyi, told Reuters he had been surprised by the number of finance officials who left the room, describing the moment as deeply emotional.
European Central Bank President Christine Lagarde, however, remained in the meeting, according to two people familiar with the proceedings.
Russia’s full-scale invasion of Ukraine in February 2022 has repeatedly complicated discussions within the IMFC, preventing members from reaching consensus statements in previous years.
Diplomatic sources said representatives from Britain, Germany, France, Denmark, Sweden, Finland, Norway, Lithuania, Latvia and Estonia were among those who walked out.
One European diplomat said the conflict remained an existential concern for Europe and argued that relations with Moscow could not be normalised while the war continued.
Western allies divided over Russia’s international role
The walkout highlighted continuing disagreements among Western governments over Russia’s participation in international economic forums.
Germany had earlier warned against efforts to restore Moscow’s international standing after Siluanov attended a meeting of G20 finance ministers and central bank governors.
His appearance followed a separate G20 meeting hosted by the United States in Asheville, North Carolina, where he made his first in-person appearance at a G20 gathering since Russia’s invasion of Ukraine.
The United States supported Russia’s participation despite objections from European countries.
US Treasury Undersecretary Erin Browne told Reuters that maintaining open communication between countries was necessary to resolve international crises and pursue diplomatic solutions.
She argued that conflicts could not be resolved effectively if the parties involved refused to engage in dialogue.
Meanwhile, Ukraine’s finance minister participated in the IMF and World Bank meetings virtually to focus on domestic budget priorities.
Ukrainian President Volodymyr Zelenskiy also criticised US President Donald Trump over a diesel deal involving Russia during a European Union summit on Friday, October 16. He welcomed the prospect of European allies taking a greater role in peace negotiations.
EU leaders have continued to support Zelenskiy following renewed criticism from Trump, who described Ukraine’s strikes on Russian oil refineries as a “disgrace.”
Trump also waived a new congressional requirement to impose tougher sanctions on Russia on Friday, underscoring continuing differences between Washington and its European allies over the response to the war.
The developments highlight the difficulties facing international institutions as they seek to coordinate economic policies amid geopolitical tensions, trade disputes and uncertainty over the global economic outlook.
Goodness Anunobi
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