Global economic outlook faces higher uncertainty: IMFC chair

ISTANBUL

The chair of the International Monetary and Financial Committee (IMFC), Nadia Calvino, said Friday the global economic outlook faces increased uncertainty.

"So far, the global economy has shown resilience, and the worst macroeconomic outcomes contemplated in the Fall have not materialized. Nevertheless, the growth outlook remains subdued and downside risks have increased," she said at the 47th meeting of the IMFC in Washington, D.C.

Calvino said the growth outlook remains subdued and downside risks have increased, such as successive shocks, Russia's war on Ukraine, and monetary policy tightening.

Such risks are weighing on global economic recovery and macro-financial stability, which became evident by recent banking and financial market crisis, said the chair of IMFC, which is the policy advisory committee of the IMF's board of governors.

"Inflation has moderated somewhat, but underlying price pressures remain sticky. Debt vulnerabilities are elevated, while food and energy insecurity persist, affecting vulnerable countries and people the most," said Calvino who is also Spain's first vice president and minister for economy and digitalization.

"In addition, inequality is increasing, climate shocks are intensifying, and fragmentation risks are rising," she added.

Calvino also expressed her deepest sympathies to the people of Türkiye and Syria for the tragic loss of life and widespread destruction caused by the devastating earthquakes in February.