Saudi Finance Minister Mohammed Al-Jadaan said the global economy’s ability to withstand crises depends on adopting a “unified strategic vision and swift reforms,” warning that excessive market optimism may be masking serious geopolitical risks, particularly conflicts that threaten supply security.
Al-Jadaan made the remarks at a joint press conference with Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), following a meeting of the International Monetary and Financial Committee (IMFC), during the IMF–World Bank Spring Meetings.
The committee concluded its session by adopting the “Diriyah Principles,” described as a landmark framework for IMF quota and governance reform, signaling a renewed phase of multilateral cooperation amid heightened global uncertainty.
Peace as a Foundation for Sustainable Growth
Al-Jadaan said the global economy has faced repeated shocks in recent years driven by wars and conflicts, including the latest escalation in the Middle East.
Beyond the severe humanitarian toll, he said, these shocks have global economic consequences that disproportionately affect the poorest and most vulnerable populations. He cautioned that this is unfolding at a time when policy space has narrowed and international cooperation has weakened.
He emphasized that effective policy responses depend on how shocks transmit through domestic economies, requiring timely and flexible measures supported by credible frameworks and strong international coordination.
Ending wars and securing lasting peace, he said, are indispensable conditions for sustainable growth and long-term stability.
Conflict Risks and Implications for Energy Security
In its statement, the IMFC said the global economy has shown resilience despite repeated shocks, including wars and conflicts. However, it described the Middle East conflict as a significant new global shock, with its economic impact contingent on its duration, intensity, and geographic spread.
The committee noted that damage to infrastructure and disruptions to transportation already pose serious risks to the global economy, despite efforts to sustain energy flows, including rerouting shipping and trade routes to safeguard supply chains.
Members stressed that the impact of the shock varies widely across countries. A prolonged conflict could keep fuel and fertilizer prices elevated, disrupt supplies of key inputs, and intensify risks to energy and food security, global growth, inflation, and external balances.
The statement added that tighter financial conditions and potential spillovers to financial stability could further cloud the outlook. These risks are compounded by deep structural shifts in technology, demographics, and climate-related challenges that are reshaping economies and testing their resilience.
Economic and Financial Policy Priorities
Against this backdrop of heightened uncertainty, the committee said the top priority is to safeguard macroeconomic and financial stability while supporting strong, broad-based growth through credible, timely, and adaptable policies.
Central banks reaffirmed their commitment to price stability, emphasizing that independence and clear communication are essential to maintaining policy credibility and anchoring inflation expectations.
On fiscal policy, the committee said governments should calibrate spending within credible medium-term frameworks to ensure debt sustainability. Where fiscal space permits, temporary and targeted measures can be used to protect vulnerable populations.
Members also reaffirmed their commitment to international standards and to monitoring risks to financial stability. This includes strengthening oversight of systemic risks linked to artificial intelligence, nonbank financial institutions, and digital assets, while leveraging the benefits of technological innovation.
Structural Reforms and International Cooperation
The committee underscored the need to advance structural reforms to encourage private-sector investment, boost productivity, and strengthen energy security.
Members pledged continued cooperation to address excessive global imbalances and trade tensions, build more resilient supply chains, and support a fair and open global economy. They also reaffirmed exchange rate commitments made in April 2021.
The statement welcomed the IMF Managing Director’s Global Policy Agenda and highlighted the IMF’s central role in supporting countries through policy advice, capacity development, and financial assistance in coordination with other international institutions.
Supporting Vulnerable Countries and Addressing Debt
The IMFC reiterated its commitment to supporting countries in promoting stability and growth, with particular focus on low-income and fragile states affected by conflict, especially those facing rising debt pressures.
Members pledged to improve sovereign debt restructuring processes, including under the G20 Common Framework, and to advance work through the Global Sovereign Debt Roundtable.
The committee welcomed the updated “Restructuring Playbook” and called for greater transparency from all stakeholders, including private creditors.
It also urged stronger support for countries with sustainable debt facing short-term liquidity challenges, including faster implementation of the IMF–World Bank “three-pillar approach” and completion of the review of the debt sustainability framework.
Strengthening Surveillance and Lending
The committee backed efforts to enhance IMF surveillance, emphasizing analytical rigor and evenhandedness, and said it looks forward to completing the Comprehensive Surveillance Review and the review of the Financial Sector Assessment Program (FSAP).
Members also supported ongoing work to strengthen the IMF’s lending framework, including the Review of Conditionality and program design, as well as efforts to develop monetary policy frameworks for countries experiencing crises.
