IMF and World Bank Warn of Global GDP Slowdown

IMF and World Bank warn of global GDP slowdown.
Reported by EFE.
Full details below.

Amid rising trade tensions and an uncertain economic outlook, the International Monetary Fund (IMF) and the World Bank (WB) are kicking off their traditional Spring Meetings this Monday in Washington.

This year’s sessions are heavily influenced by the tariff war promoted by U.S. President Donald Trump, as well as by the global impact of these policies.

IMF Managing Director Kristalina Georgieva warned that uncertainty and volatility in international markets are stalling global Gross Domestic Product (GDP) growth.

While ruling out an immediate recession, she said that new projections will include “notable reductions” in economic growth and “increased inflation forecasts” for some regions.

IMF and World Bank warn of global GDP slowdown

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“The increase in financial volatility and growing distrust between nations are eroding the foundations of the international system,” said Georgieva, who nevertheless emphasized that every challenge is also an opportunity for transformation.

Throughout this week, the IMF will present three key reports:

The World Economic Outlook (WEO), the Fiscal Monitor, and the Global Financial Stability Report, all of which will assess the global economic and banking health in this complex context.

Meanwhile, World Bank President Ajay Banga focused his remarks on the urgency of job creation, especially in developing nations.

According to his estimates, over the next decade, 1.2 billion young people will enter the labor market—far exceeding the number of jobs projected to be created.

Trump’s return and its implications

“Protectionism can stifle growth. History teaches us that more open economies are more resilient to crises,” Banga emphasized, while expressing concern over the restrictive trade policies coming from Washington.

Trump’s return to power has reignited doubts about the U.S.’s commitment to multilateralism and to the international institutions it has historically led.

As the largest shareholder in both the IMF and the World Bank, decisions from the White House could significantly impact key programs.

Such as the $4 billion pledged to the International Development Association (IDA), a deal signed by former President Joe Biden’s administration.

A new economic order

“The mood is one of caution,” warned economist Rachel Glennerster, president of the Center for Global Development.

“One of the biggest questions this week will be the U.S.’s final stance on its role in these institutions.”

Against a backdrop of geopolitical tensions, strategic alliance shifts, and growing economic inequality, the IMF and World Bank’s Spring Meetings are shaping up to be a critical forum for measuring the world’s ability to respond to the challenges posed by a new emerging economic order.

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