Signage at the International Monetary Fund and World Bank Spring meetings at the IMF headquarters in Washington. (Kent Nishimura/Bloomberg)
The world economy is at a “pivotal juncture” as trade tensions flare, members of the International Monetary Fund said in a draft statement after a week of discussions that have been overshadowed by President Donald Trump’s trade war.
The draft “Chair’s Statement” of the International Monetary and Financial Committee, the IMF’s top advisory body, also “welcomed the ongoing efforts to end wars and conflicts.” Saudi Arabia’s finance minister chaired the meeting.
“The world economy is at a pivotal juncture,” said the communique prepared by the chair, according to the draft text seen by Bloomberg News. “Following several years of rising concerns over trade, trade tensions have abruptly soared, fueling elevated uncertainty, market volatility, and risks to growth and financial stability.”
The statement, which is expected to be published April 25, didn’t directly criticize the U.S.
The draft statement reflects the shift by the U.S., its largest member, toward trade disputes. Just six months ago the same panel’s statement focused on an expected soft landing for the global economy after the shocks of COVID-19 and Russia’s invasion of Ukraine.
The draft — still subject to changes before publication — said IMF members reaffirmed “our commitment to the institution and look forward to discussing further ways to ensure the Fund remains agile and focused.”
After doubts about U.S. commitment to the Fund and World Bank, U.S. Treasury Secretary Scott Bessent this week gave conditional support to the institutions while calling for a course correction.
The chair’s statement is viewed as a watered down document compared to a traditional communique, which requires universal agreement on wording and hasn’t been issued since Russia’s invasion in 2022
