Washington D.C: The Development Committee of the IMF/World Bank Group says the global economy is undergoing a profound transformation and facing elevated uncertainty, bringing challenges.
Ms Elisabeth Svantesson, the Chair of the committee, said this in a statement on Friday in Washington, Svantesson, who is also Sweden’s Minister for Finance, however, said that the situation also came with some opportunities.
According to her, growth has been resilient, but strains are emerging.
She said that the committee would adopt sound policies that foster confidence, build resilience, and safeguard macroeconomic and financial stability.
“We will continue to cooperate to address global challenges. Ongoing wars and conflicts continue to impose a heavy humanitarian toll, with considerable economic costs and significant negative spillovers.
“Ending wars and conflicts and securing lasting peace around the world remains essential for sustainable growth and long-term stability,” she said.
She said that the global economy has continued to face significant challenges and uncertainties in the short and medium term, hindering efforts to sustain economic growth, create jobs and reduce poverty.
She commended the World Bank Group’s ongoing work in supporting client countries to establish the physical, human, and natural infrastructure necessary for job creation.
She urged the World Bank Group to continue leveraging its financing and knowledge capacity, working together to lift barriers to job creation and boost private sector investment.
“Members supported the work of the World Bank Group in expanding access to quality education, including technical and vocational training.
“It also includes aligning skills with industry needs, removing barriers to economic opportunities and entrepreneurship for all, including for women and girls,” she said.
The committee’s chair said that members were encouraged by the group’s continued engagement to deliver accessible, affordable, and reliable energy to those who most need it.
She said that the beneficiaries would include Mission 300, the African Development Bank, and its partners.
Governors recognised the rising demand for access to energy because jobs, basic public services, businesses, and increased digitalisation will require it.
“The Development Committee called on the WBG to continue to collaborate with the International Monetary Fund and development partners on countries’ debt sustainability, transparency and vulnerabilities.
“It should support countries in effective and fair domestic resource mobilisation.
“Governors also called for the World Bank Group to continue to strengthen partnerships with other international organisations and the private sector,” she said.
The Development Committee is a ministerial-level policy forum shared by the World Bank Group and the IMF.
Its formal name is “Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries.”
It was established in 1974 by parallel resolutions of the Boards of Governors of the IMF and World Bank.
