People’s Bank of China Governor Pan Gongsheng urged the International Monetary Fund to scrutinize fiscal risks in major advanced economies and their spillovers, while giving capital flows more weight in assessing global imbalances.
Pan presented the proposals in written remarks to the 54th meeting of the International Monetary and Financial Committee (IMFC) in Bangkok on Oct. 16-17, the People’s Bank of China said. He urged deficit countries to reduce fiscal shortfalls and raise domestic savings, while surplus countries should encourage consumption and investment.
He also called for better IMF assessment models, backed the multilateral trading system and opposed protectionist measures. The framework assigns policy changes to both sides of global imbalances: lower deficits and higher savings for one group, stronger consumption and investment for the other.
The IMF Executive Board had concluded its 2026 Comprehensive Surveillance Review on Sept. 17, before Pan’s remarks. The review set a broader agenda for external-sector and spillover analysis, including capital flows, trade and industrial policies, and the effects national policies have abroad.
The previous comprehensive review concluded in May 2021. The current review set priorities before Pan spoke and was not a response to his proposal.
IMF staff had earlier urged China to shift toward consumption-led growth. Its 2025 China Article IV report identifies the change as a policy priority, saying strong exports had partly offset weak domestic demand and calling for less reliance on exports and investment.
The staff report is dated Jan. 28, 2026, and the report package was released in February. The report also says China’s growth imbalance can create adverse spillovers for trading partners.
Reuters connected Pan’s remarks with pressure in global bond markets. It reported that rising borrowing costs and large fiscal deficits in major economies were contributing to a selloff, with heavy artificial-intelligence investment adding to the strain.
