World Bank, IMF spring meetings get underway

WASHINGTON

The World Bank and International Monetary Fund’s spring meetings have got underway with an ambitious reform and fundraising agenda likely to be overshadowed by concerns over high inflation, rising geopolitical tension and financial stability.       

The fund expects global growth to fall below three percent this year, and to remain at close to three percent for the next half a decade - its lowest medium-term prediction since the 1990s.    

Close to 90 percent of the world’s advanced economies will experience slowing growth this year, while Asia’s emerging markets are expected to see a substantial rise in economic output - with India and China predicted to account for half of all growth, IMF managing director Kristalina Georgieva said last week. 

This year’s spring meeting will be held against the backdrop of high inflation and ongoing concerns about the health of the banking sector following the dramatic collapse of Silicon Valley Bank.                 

The spring meeting also provides an opportunity to make progress on an ambitious U.S.-backed agenda to reform the World Bank so it is better-prepared to tackle long-term issues like climate change.    

U.S. Treasury Secretary Janet Yellen told AFP in an interview that she expects member states will agree to update the World Bank’s mission statement to include “building resilience against climate change, pandemics, and conflict and fragility,” to its core goals.     

Yellen said she also expects an agreement to “significantly” stretch the World Bank’s financial capacity, which “could result in an additional $50 billion in extra lending capacity over the next decade.”    

The changes will likely fall to the bank’s next president to implement, with current World Bank president David Malpass due to step down early from a tenure marked by concerns over his position on climate change.    

Malpass is widely expected to be replaced by US-backed former Mastercard chief executive officer Ajay Banga, who was the only person nominated for the position.