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Macro-Criticality of Water Resources

Author

Listed:
  • Suphachol Suphachalasai
  • Ximing Dong
  • Pedro Juarros
  • Junko Mochizuki
  • Christine J. Richmond
  • Sylke von Thadden-Kostopoulos

Abstract

This paper examines the macro-criticality of water resources in the context of climate change. It summarizes the past and future trends of water scarcity and droughts and proposes a framework to analyze the macro-criticality and role of public sector engagement in the water sector. The paper maps out channels through which water resources affect the macro-fiscal and balance of payments positions and develops an understanding of macro-fiscal exposure based on empirical evidence. It also synthesizes emerging insights from IMF-supported operations and capacity development activities, thereby clarifying the rationale and scope for IMF engagement in water-related policy reforms.

Suggested Citation

  • Suphachol Suphachalasai & Ximing Dong & Pedro Juarros & Junko Mochizuki & Christine J. Richmond & Sylke von Thadden-Kostopoulos, 2025. "Macro-Criticality of Water Resources," IMF Working Papers 2025/251, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2025/251
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