The head of the International Monetary Fund’s steering committee has warned that the global economy remains vulnerable despite showing strong resilience, as tensions over Russia’s war against Ukraine triggered a walkout by nearly half of delegates during a major international meeting in Bangkok, Thailand.
Saudi Finance Minister Mohammed Al-Jadaan, who chairs the International Monetary and Financial Committee (IMFC), acknowledged the walkout on Saturday but said the most important outcome was that members had agreed on the committee’s final statement.
“We came here for a reason, and we achieved it. Look at this chair statement, it clearly says that all members agreed to the statement, so that’s what matters,” Al-Jadaan told Reuters.
Speaking at the closing news conference of the IMF and World Bank annual meetings, which attracted more than 18,000 participants to Bangkok, Al-Jadaan described the global economy as demonstrating “remarkable resilience” despite significant challenges.
These include ongoing conflicts, threats to energy and food security, rising public debt and risks associated with the rapid development of artificial intelligence.
However, he cautioned that governments and financial authorities must not become complacent about the threats facing the global economy.
“The message from the IMFC members is clear: there is no room for complacency,” he said.
The committee’s statement warned that escalating conflicts and trade disputes could disrupt major shipping routes, increase commodity prices, particularly refined energy products, and worsen global energy and food security.
Al-Jadaan also urged governments to rebuild financial reserves while protecting vulnerable populations and investments that support economic growth. He emphasised the importance of central bank independence, private-sector-led growth and international cooperation to address trade tensions and global economic imbalances.
IMF Managing Director Kristalina Georgieva described the meetings as productive but acknowledged growing anxiety among member countries over widening economic and technological inequalities.
She said many lower-income countries outside the artificial intelligence value chain feared they were being left behind as the technology reshaped the global economy.
“These meetings also have shown that in a world of repetitive shocks and geopolitical fragmentation, still there is desire for multilateral dialogue and cooperation,” Georgieva said.
Delegates Walk Out During Russian Minister’s Speech
The economic discussions were overshadowed by tensions over Russia’s ongoing war against Ukraine, which began with Moscow’s full-scale invasion in February 2022.
During Saturday’s meeting, numerous delegates left the room as Russian Finance Minister Anton Siluanov delivered his remarks in Russian.
Bundesbank President Joachim Nagel said nearly 50 per cent of delegates participated in the walkout, describing it as a strong message of solidarity with Ukraine.
“This is a very strong signal about solidarity and values. It would be the best for the world economy if this unprovoked war of aggression against Ukraine would end,” Nagel said, adding that he was proud so many participants had left the session.
The Bank of England confirmed that its governor, Andrew Bailey, was among those who joined the walkout.
Delegates from several European countries, including Britain, Germany, France, Denmark, Sweden, Finland, Norway, Lithuania, Latvia and Estonia, were among those reported to have left.
A European diplomat explained the position of some participants, saying: “The Ukraine war is existential for us in Europe. We cannot normalize relations with Russia.”
Russia’s invasion has repeatedly complicated the work of the IMFC, preventing the committee from reaching consensus statements in previous years. Divisions resurfaced during this week’s meetings amid renewed tensions between Washington and Kyiv.
Germany had also warned against efforts to restore Russia’s standing on the international stage after Siluanov attended a meeting of G20 finance ministers and central bank governors. His appearance followed his participation in a G20 meeting hosted by the United States in Asheville, North Carolina, just over a month earlier.
US Treasury Undersecretary Erin Browne defended Russia’s participation, arguing that dialogue was necessary to resolve international crises.
“We think it’s really important if you’re going to solve a crisis, you need to have open dialogue and open conversation,” Browne said. “And you can’t have … dialogue, and you can’t have resolution to conflict if no one’s talking to one another.”
Ukraine’s finance minister participated in the meetings virtually to focus on domestic budget priorities.
Meanwhile, Ukrainian President Volodymyr Zelenskiy criticised US President Donald Trump’s diesel agreement with Russia during a European Union summit on Friday, while welcoming the possibility of European allies taking a greater role in peace negotiations.
EU leaders have continued to support Zelenskiy after Trump again criticised Ukraine, describing its attacks on Russian oil refineries as a “disgrace.”
Trump also waived a new congressional requirement to impose tougher sanctions on Russia on Friday, adding another layer of uncertainty to the international response to the war.
