Washington DC – As world leaders gather to make decisions on the global economy, the IMF releases reports dominated by risks to the global economy stemming from the Middle East war, debt and trade tensions. One major IMF report, the World Economic Outlook report forecast economic growth will slow down to at least 3.1% in the best-case scenario, but it could go down to 2% if war and conflict continue.
"The Iran war, trade tensions and unsustainable country debt are the reasons that we are hearing dire economic projections,” said Eric LeCompte, the Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert who monitored IMF meetings since 2010. "The worst impacts of our economic situation will be felt by the poor and the vulnerable."
The World Food Programme recently estimated that the number of people suffering from a lack of food could go up by 45 million people – from its current historical high of 318 million – if the war continues until June.
“We will experience lower economic growth and higher food and fuel costs for the foreseeable future,” added LeCompte. "The IMF recommends that countries should stabilize their too high debts and invest in protecting the vulnerable and addressing the impacts of inflation for all of us."
Another flagship IMF report, the Global Financial Stability Report offered serious concerns for global markets.
In a letter to the G20 this week, the Financial Stability Board warned of vulnerabilities in financial markets that could bring a “double or triple whammy” threat to financial stability.
Read Jubilee USA's statement on the IMF Global Financial Stability report here.
Read Jubilee USA's statement on the IMF World Economic Outlook report here.
Read Jubilee USA's press release on IMF chief Kristalina Georgieva's curtain-raiser speech here.
Read more about Jubilee's Spring Meeting events here.