IMF warns global resilience is running out as Bangkok meetings end

BANGKOK, Thailand. The International Monetary Fund (IMF) has warned that the global economy’s ability to withstand shocks is weakening, urging countries to rebuild financial buffers, rein in debt and implement reforms to protect economic stability.

IMF Managing Director Kristalina Georgieva said the world economy had demonstrated resilience despite successive shocks, but warned that the capacity to absorb further disruptions was being depleted.

Her remarks came as the 2026 IMF and World Bank annual meetings in Bangkok, Thailand, drew to a close, following a week of discussions on global economic stability, financial vulnerabilities and cooperation among countries.

One of the final engagements was the 54th meeting of the International Monetary and Financial Committee (IMFC), which advises the IMF Board of Governors on the management and supervision of the international monetary and financial system.

Uganda was represented at the meeting by the Permanent Secretary and Secretary to the Treasury, Mr Ramathan Ggoobi, and Bank of Uganda Governor Michael Atingi-Ego.

The meeting was chaired by Saudi Arabia’s Finance Minister, Mr Mohammed Aljadaan, whose term as IMFC chair was extended by one year.

Mr Aljadaan said the global economy had weathered recent shocks better than expected, but warned that countries could not take their resilience for granted as financial buffers continued to shrink.

“Wars and conflicts continue to impose a heavy humanitarian toll, with large economic costs and significant negative spillovers. Disruptions to supply chains and trade tensions are adding to uncertainty and price pressures,” he said.

He called for sound and consistent macroeconomic policies and stronger multilateral cooperation to promote economic and financial stability.

Central banks, he added, remained committed to maintaining price stability in line with their respective mandates.

Ms Georgieva urged governments to strengthen their fiscal positions, reduce debt and identify vulnerabilities that could threaten economic stability. She also called for countries to improve cyber resilience and embrace artificial intelligence (AI) as economies adapt to technological changes.

She said governments needed to demonstrate the political will to implement reforms, even when the measures were difficult.

The IMF chief also emphasised the need for countries to urgently address fiscal vulnerabilities and advance efforts to consolidate public finances.

She called for credible medium-term fiscal frameworks to help governments maintain sustainable debt levels and ensure that public finances remained resilient to future shocks.

The warnings come amid continued uncertainty in the global economy, with geopolitical conflicts, trade tensions and supply-chain disruptions threatening to raise costs and complicate economic planning.

For economies such as Uganda, which depend on international trade and remain exposed to movements in global commodity prices and financing conditions, developments in the global economy can affect import costs, inflation, exchange-rate stability and government borrowing.

The discussions at the Bangkok meetings underscored the importance of maintaining sound economic policies while building sufficient buffers to respond to unexpected shocks.

The IMF and World Bank annual meetings bring together finance ministers, central bank governors, development partners and other policymakers to discuss global economic developments, financial stability and strategies for economic growth and development.