Pope Francis' Calls for IMF, G20 and World Bank Reform Loom Large After Death of Religious Leader

Washington DC – As world leaders gather for G20, World Bank and IMF meetings, the IMF forecasts historical low economic growth in its flagship World Economic Outlook report.

According to the IMF, while growth was previously low but stable after the pandemic and other shocks, the situation changed significantly since January of this year. The latest report predicts growth in the next two years will be 0.8% lower than it expected in January. The Fund took the rare step of making the projections in a “reference forecast,” based on information available as of April 4, noting that trade tensions in multiple countries increased uncertainty and make assumptions even more challenging.

"This report is bad news for the global economy,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network and a United Nations finance expert who monitored IMF meetings since 2010. “The report is saying because of trade tensions, debt challenges and possible increases in inflation, we could lose the modest gains in economic growth we achieved.”

The IMF report finds that global debt continued to increase.

The passing on Monday of Pope Francis as faith communities celebrate a Jubilee year in which he had called for bold solutions to tackle the debt problems of the poorest countries, casts a shadow on the meetings.

Another IMF report released at the meetings, the Global Financial Stability Report underscored more economic risks and economic uncertainty. Highly indebted developing countries that faced the highest debt costs may now need to refinance at even higher costs.

“High debts in the poorest countries significantly contribute to financial instability everywhere," added LeCompte. “Pope Francis left us a message beyond good moral guidance. Francis' message for all of us was about good economics to benefit everyone.”

The IMF and World Bank main policymaking bodies, as well as G20 finance ministers, meet on Thursday and Friday.

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 Jubilee USA's statement on the passing of Pope Francis who had focused this year's Church efforts on debt relief and IMF reform here.