Despite the threat of a global recession being largely avoided, growth will remain weak in the near future according to upcoming International Monetary Fund forecasts. While some regions are experiencing no growth at all, the global economy is expanding but not very robustly. Structural reforms are necessary to address the current economic climate, German government sources have stated.
Looking ahead, global growth prospects in the medium term are disappointingly low. The upcoming IMF spring meeting in Washington DC is happening amidst challenging circumstances, including recent events such as the Iranian attack on Israel. During the meeting, G20 finance ministers and central bank governors will discuss various topics with a focus on climate financing and strengthening international development banks.
German Finance Minister Christian Lindner and Bundesbank President Joachim Nagel have called for the IMF to concentrate on its core responsibilities in a joint guest op-ed published in Germany’s Handelsblatt. They expressed their views that financing a development policy agenda should be handled by institutions like the World Bank instead. No formal communique is planned following the G20 meetings.
