IMF Spring Meetings: Navigating an uncertain world
Washington, DC, United States (PANA) - High economic uncertainty may be an overarching theme of the IMF Spring Meetings. But it has been on an upward trend over the past few decades, reflecting a confluence of factors.
In a panel discussion on Saturday,, IMF Middle East and Central Asia Department director Jihad Azour highlighted recent Fund research showing how uncertainties have particularly large negative economic impacts in the region, affecting growth as well as investment.
Muhammad Aurangzeb, Minister for Finance and Revenue of Pakistan, said that uncertainty provided opportunity to countries in the region. “We need to focus on what’s in our control,” he said, citing the example of crop yields, technological innovation, and increased trade with neighbours.
European Bank for Reconstruction and Development (EBRD) Chief Economist Beata Javorcik agreed: “What's important is not which shocks hit you, but how you respond.”
She added that uncertainty may create an impetus for action, “focusing minds and paradoxically leading to better outcomes” regarding opportunities.
Elena Duggar, Moody's Chief Credit Officer - Americas, said that “the impact of trade measures and tariffs will play out over time. So it will be over the coming weeks and months that all of the impact on the economies will play up. But we've seen the financial markets have already reacted.”
It’s important for countries to respond to uncertainty in a timely manner and to build buffers, according to Azour. “If you don't address an uncertainty issue for two years, you could lose four and a half percent of growth.”
-0- PANA AR/MA 26April2025
