Countries are increasingly turning to industrial policy to reshape their economies by supporting strategic sectors and firms. Ahead of the International Monetary Fund (IMF)–World Bank Annual Meetings, the IMF is releasing new research that quantifies some of the potential opportunities and trade-offs of such policies.

Motivations for industrial policy include boosting productivity, reducing reliance on imports—particularly in energy—and enhancing resilience. At the same time, industrial policy involves trade-offs. Onshoring production in strategic sectors can raise consumer prices for extended periods and require significant fiscal spending. For industrial policy to succeed, it requires precise targeting and implementation, strong institutions, complementary structural reforms, and sound macroeconomic management.

On October 3 at 10:00 am the IMF will launch a chapter from the forthcoming World Economic Outlook and Global Financial Stability Report that analyzes the impact of the resurgence of industrial policy. This event will feature Shekhar Aiyar, assistant director in the Research Department of the IMF, Mehdi Benatiya Andaloussi, economist at the Research Department of the IMF, and Mary Lovely, Anthony M. Solomon Senior Fellow at the Peterson Institute. This conversation is moderated by Josh Lipsky, chair of international economics at the Atlantic Council.

New policy: In-person attendees will be required to show photo ID upon arrival, and no on-site registration will be permitted. Guests will not be admitted later than twenty minutes after the event’s start time. Registration for this event will close at 5:00 p.m. ET the day prior.