China supports IMF’s review of fiscal risks in major economies
China’s central bank governor stated on Saturday that Beijing endorses the International Monetary Fund in enhancing the oversight of fiscal risks in “major advanced economies” and their spillover effects. Governor Pan Gongsheng of the People’s Bank of China addressed the International Monetary and Financial Committee meeting during the annual gatherings of the IMF and World Bank in Bangkok.
Rising borrowing costs, persistent high fiscal deficits in significant economies, and volatile investor sentiment, compounded by substantial capital investments in artificial intelligence, have led to a pronounced downturn in the global bond market. Pan urged the IMF to analyse global imbalances and place greater emphasis on the impact of financial factors such as capital flows on these imbalances, a statement from the bank indicated.
The central bank chief stated that China endorses the multilateral trading system and stands against all varieties of protectionist measures. Earlier this week, IMF Managing Director Kristalina Georgieva emphasised that China needs to transition from an export-driven growth model to one that prioritises domestic consumption.
