The World Bank and the International Monetary Fund Annual Meeting Recap

The annual meeting of the World Bank and the International Monetary Fund took place this October in Washington, D.C. This year, the world’s finance ministers and central bankers discussed the shaky economic standings of most of the globe, and how to progress in policy to hopefully rectify and not worsen the situation.

Hot topics included Russia’s invasion of Ukraine, the UK’s tax policies, how rising interest rates in the US are affecting nations around the world, and tamping down inflation everywhere. In the US, crowdfunding trends are one method that is making it possible for people to seek refuge in private markets. Some of these opportunities are only available to those who meet the investor criteria to become accredited investors.

Beyond the ways inflation is causing harm to its citizens, the countries had much more to discuss at this fall’s meeting.

What is the Annual Meeting?

The Boards of Governors of the International Monetary Fund (IMF) and the World Bank Group (WBG) come together with the major players in the world economies at these annual meetings. This includes central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations, and academics.

At the meeting, they discuss issues of global concern, including the global economic outlook, poverty eradication, economic development, and aid effectiveness. Seminars, regional briefings, press conferences, and other events with a focus on the global economy, international development, and the world's financial system also take place over the course of the 6-day meeting.

As you can suspect, they had a lot to cover this year.

What Happened

This year’s meeting takes place after a tumultuous year for the globe. The economic recovery from the pandemic, combined with the conflict in Russia-Ukraine, has spelled out trouble for nearly all of the IMF’s 190 member countries.

“It was an overall fairly pessimistic week,” said Doug Rediker, a former IMF executive board member.

Regarding the Russia-Ukraine war, the advisory body of the IMF, blocked by Russia, couldn’t reach a consensus.

Regarding the debts of certain low-income countries, Treasury Secretary Janet Yellen urged richer nations to do more, to which, China left the conversation.

Regarding recession, the IMF lowered its outlook for global economic growth. This is due to rising interest rates that are expected to slow economies. While a necessary evil, the IMF fears the efforts to cool inflation could cause substantial harm, particularly, as it relates to the value of the dollar. As the dollar surges, US imports become more expensive for other countries, thus raising inflation globally.

On that note, Managing Director of the IMF, Kristalina Georgieva, urged for collaboration between monetary and fiscal policymakers.

She stated: “Policymakers have an incredibly narrow path to walk—there is no room for missteps.” She continued by saying, the right future choices “begin with a more proactive, precautionary mindset to build resilience in a more shock-prone world.”

But these words from Georgieva perhaps summarize her message to the countries best: “Buckle up, and keep going.”

While there was a lot to cover at this meeting, there seems to be little resolution in the aftermath. The World Bank and IMF will meet again in the spring. By then, perhaps there will be better news.