Global imbalances are on the rise again. After more than a decade of steady decline, current account balances have widened in recent years. The proliferation of industrial policies and trade restrictions has added new complexity to understanding what drives these imbalances and how to manage them.
Recent IMF analysis on “Understanding Global Imbalances” presents a comprehensive framework for analyzing how macroeconomic, trade, and industrial policies influence current account positions and generate cross‑border spillovers. It assesses various adjustment paths—including coordinated reforms—and their implications for global growth. A key finding is that traditional macroeconomic policies remain the main drivers of imbalances—and thus well‑designed fiscal and structural reforms can both narrow external gaps and boost global output.
This event will bring together policymakers and academics to discuss the risks posed by global imbalances, their root causes, and options for achieving an orderly and sustainable adjustment. Discussions will focus on the role of national policies in supporting domestic resilience, external sustainability, and long-term development.
