IMF, World Bank meets to take stock of global economic shocks amid Middle East crisis

New Delhi, April 12 Finance ministers and central bankers from the 191 member countries will attend the International Monetary Fund (IMF) and World Bank’s spring meetings, to be held from April 13-18 in Washington, DC, to take stock of the global economic uncertainties amid the fragile ceasefire between the US and Iran and continuing uncertainties over the outcome of the peace talks.

IMF managing director Kristalina Georgieva has warned that the new economic forecasts, to be published on Tuesday, along with a report on global financial stability, are likely to be downgraded amid the economic shocks of the Middle East conflict.

In January, world output was seen rising 3.3 per cent this year, with expansions of 2.1 per cent in the US, 1.4 per cent in the euro zone and 5.4 per cent across emerging Asia. These are likely to be scaled down when the new estimates are announced.

Georgieva has pointed out that the resilient world economy is being tested again by the war in the Middle East. The conflict has caused considerable hardship around the globe.

“When we welcome ministers and central bank governors to our Spring Meetings next week, our focus will be on how best to weather this latest shock and ease the pain on economies and people. This requires understanding the nature of the shock, the channels through which it affects the economy, the size of the impact, and the policies that can mitigate it,” she said,

The world’s daily oil flow has been cut by some 13 per cent, and its LNG flow by some 20 per cent, resulting in prices shooting up and disruption in supply chains across the world.

The annual and spring meetings of the International Monetary Fund (IMF) and the World Bank Group each year bring together central bankers, ministers of finance and development, private sector executives, civil society representatives, and academics to discuss the state of the global economy and issues of international concern, such as the growth outlook, financial stability, and poverty reduction.

The Board of Governors consists of a high-level representative from each of the 191 member countries, typically the finance minister, central bank governor, or minister of development. During the Meetings, the Governors participate in a plenary session and discuss the challenges for the global economy. They also decide on major policy issues related to the future work of the two organisations, which are subsequently implemented by their respective Executive Boards.

In addition, the IMF's International Monetary and Financial Committee (IMFC) and the joint IMF-World Bank Development Committee (DC) meet to discuss progress on the work of the two organizations.

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