The German government has expressed concern over the modest growth prospects for the global economy in the medium term, despite avoiding a global recession. This is according to International Monetary Fund (IMF) forecasts set to be released later in the day. While the global economy is expanding, some regions, such as Germany, are experiencing growth that is practically non-existent. This has highlighted the need for structural reforms to boost economic prospects in these areas.
German Finance Minister Christian Lindner and Bundesbank President Joachim Nagel have argued that financing a development policy agenda should be left to institutions like the World Bank, rather than being shouldered by the IMF. They made this argument in an op-ed for Handelsblatt, urging the IMF to return to its primary responsibilities. Despite these concerns, a formal communique is not expected to come out of this week’s IMF spring meeting in Washington DC, where discussions will likely be influenced by recent geopolitical tensions, including the Iranian attack on Israel. The meeting will host G20 finance ministers and central bank governors for two focused discussions on climate financing and strengthening international development banks.