International Monetary Fund highlighted the need for tax and structural reforms to boost the growth led by the private sector, given the global slowdown and the increase in commercial tensions
In a statement issued after the 51st Meeting of the International Monetary and Financial Committee (IMFC), the It assessed that the global economy is going through a “pivotal moment”, marked by the intensification of commercial tensions, which has generated “high uncertainty, market volatility and risks to growth and financial stability”. The text, led by Mohammed Aljadaan, president of IMFC, warns of a slowdown in short -term world growth, with negative risks on the rise.
Committee members recognized that geopolitical conflicts and structural transformations, such as digitization and climate change, impose additional challenges. “Wars and conflicts impose a heavy humanitarian and economic cost,” they said. Still, they stressed that the IMF is not the appropriate forum for dealing with security issues, which should be debated in other spheres. In response to risks, the group defended tax and structural reforms that encourage growth led by the private sector. “Tax adjustments should be aware of the distributive impacts and supported by a credible medium -term consolidation plan,” they said. Central banks, in turn, are committed to price stability, adjusting policies according to available data.
The IMF has also reiterated the importance of supporting vulnerable countries, especially low -income economies and affected by conflict. “We reaffirm our commitment to treat debt vulnerabilities effectively,” the committee said, citing advances in the common landmark of for restructuring.
Regarding the fund’s governance, the IMFC expressed support for the expansion of quotas as a way to strengthen the institution and ensure greater representativeness to emerging economies. “The realignment of quotas should better reflect the weight of countries in the global economy,” they said. The meeting ended with the reaffirmation of the IMF role as a “reliable counselor” in a challenging international scenario. The next IMFC meeting is scheduled for October.
*With information from Estadão Content
Posted by Victor Oliveira
