07-Nov-2025 13:07

Dan Katz, First Deputy Managing Director of the IMF has stated that global economic relations are being transformed by the growing intersection between geopolitics and trade, new technologies, and a rapidly evolving rethinking of long-held assumptions about international economic integration. In this context, the global economy is being redesigned'not just for short-term efficiency, but for long-term resilience. He noted that financial integration is also evolving. Core funding markets are increasingly dominated by non-bank financial intermediation, which may increase the potential for rapid transmission of shocks. Needed but painful domestic adjustments could come at the sharp end of repricings rather than deliberate planning. These changes require countries and policymakers to adapt. They bring opportunities for innovation and growth, but also vulnerabilities and spillovers that demand careful policy responses.

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