The International Monetary Fund and World Bank’s spring meetings in Washington have come to an end, and the global lenders are facing important challenges in the year ahead. GZERO has been on the ground to provide the major highlights of the meetings.
The IMF’s global economic outlook is positive overall, with inflation easing in the US and Europe, and global GDP growing at 3.2%. Despite recent concerns about a recession, both the US and Chinese economies are experiencing growth. However, some of the lowest-income countries are still struggling, with one-third being poorer now than they were in 2019 before the pandemic. Rising inflation has led to increased interest rates, making it difficult for lower-income countries to service their sovereign debt. The IMF and World Bank are focused on bringing financial stability to these vulnerable situations.
The World Bank has announced a $35 billion plan to connect 300 million people in Africa to electricity, aiming to drive the continent’s growth in the future. However, many African students who might benefit from electricity also lack access to basic healthcare. More than half of the world’s population does not have formal healthcare, and two billion people struggle to afford it. The World Bank plans to provide quality healthcare to 1.5 billion people and strengthen public health systems for sustainable improvements.
World Bank President Ajay Banga has taken over from David Malpass and is introducing a new approach to streamline processes and make the institution more agile and flexible. This may include merging the Bank’s key conferences into one. Progress on these initiatives will be updated during the Annual Meetings this fall.