IMF and World Bank meetings in Washington left global finance leaders with more questions than answers on the economic impact of U.S. tariffs. Discussions on trade and debt concerns highlighted growing uncertainty, as markets worry about the broader economic fallout.
During the IMF and World Bank Spring Meetings in Washington, global finance leaders sought clarity on the economic impacts of President Trump's tariffs, but left with more questions than answers. Many officials tried to meet with U.S. Treasury Secretary Scott Bessent, but were told to be patient, as the Trump administration remained uncertain on its trade demands. Despite receiving 18 proposals and engaging in discussions, no deals were finalized.
Participants, including Polish Finance Minister Andrzej Domanski, warned that the tariffs, especially on vehicles, steel, and aluminum would harm global economies, but the U.S. remained confident it was a short-term pain for long-term gain. Meanwhile, trade talks with Japan and South Korea yielded little resolution, with future discussions likely addressing currency policies.
The IMF lowered growth forecasts for most countries but did not predict recessions. IMF Managing Director Kristalina Georgieva expressed hope that trade negotiations would reduce the uncertainty hurting global business. However, several officials privately raised concerns about rising debt and the risk of a new debt crisis.
The IMF and World Bank also faced criticism for their lack of focus on development issues, with many emerging markets struggling due to the slowdown in trade and foreign investment caused by tariffs. World Bank economist Indermit Gill highlighted rising debt in developing nations.
While the U.S. supported the IMF and World Bank, there were concerns about the institutions' expansion into non-economic areas like climate change and gender equality. U.S. officials, including Bessent, emphasized the importance of refocusing the organizations on economic stability.
The week ended with financial markets and policymakers worried about the broader economic consequences, including a decline in trust in U.S. economic leadership, particularly after the recent selloff in U.S. Treasury debt and dollar-based assets.
The International Monetary Fund (IMF) executive board approved a new $1.4 billion loan to Pakistan under its climate resilience fund, alongside the first review of its $7 billion program.
The IMF has lowered global and U.S. economic growth forecasts, citing Trump-era tariffs and rising uncertainty. Global growth is expected at 2.8% this year, while U.S. growth may slow to 1.8%, with heightened recession and inflation risks.
International financial leaders will discuss ways to restore aid to Syria during next week’s IMF and World Bank meetings.
rgentina sealed a $20 billion, 48-month Extended Fund Facility deal with the International Monetary Fund on Friday and, in a major policy move ahead of the deal, dismantled key parts of its years-long currency controls and loosened its grip on the peso.
Since joining in 1956, Argentina has become the IMF’s biggest debtor. On Friday, it secured a new $20B deal—its 23rd program. The first dates back to 1958 with a $75M loan. In total, Argentina has received $177B from the IMF to fight inflation and repeated economic crises.
The U.S. Supreme Court has granted a request from the Trump administration to lift protections under the Temporary Protected Status (TPS) program for approximately 350,000 Venezuelans, potentially opening the door to future deportations while litigation continues.
Lithuania has taken legal action against Belarus at the International Court of Justice (ICJ), accusing Minsk of organizing irregular migrant crossings and violating international obligations.
Indonesia has raised the alert level to the highest for Mount Lewotobi Laki Laki after it erupted eight times over the weekend, the country’s volcanology agency said.
As South Western Railway becomes the latest operator to be renationalised under Great British Railways (GBR), questions remain about whether these changes will lead to better services or lower fares.
In Malaysia, rivers are under threat from invasive fish species that have spread widely, harming native wildlife and local ecosystems.
Ukrainian President Volodymyr Zelenskyy met Turkish President Recep Tayyip Erdogan in Ankara on May 15, with discussions reportedly focusing on upcoming peace talks between Ukrainian and Russian delegates in Istanbul.
Israeli Prime Minister Benjamin Netanyahu said the war in Gaza will not stop until Hamas is destroyed, following the release of US-Israeli soldier Edan Alexander.
Qatar signed a landmark agreement with U.S. aerospace giant Boeing on Wednesday to acquire 160 aircraft for Qatar Airways, a deal valued at $200 billion. The signing took place in Doha during the visit of U.S. President Donald Trump.
Ukrainian and Russian delegations meet behind closed doors at Istanbul’s Dolmabahçe Palace at 10:00 local time today to explore security guarantees, territorial integrity and a possible ceasefire.
EU approves 17th Russia sanctions, blacklisting almost 200 shadow‑fleet ships, 30 evasion firms and 75 defence figures, banning missile chemicals and arming Brussels to strike Kremlin hybrid and operations.
Asian markets began the week on a cautious note Monday as softer-than-expected Chinese retail sales data and growing uncertainty over U.S. economic and trade policy pressured sentiment across global equities and currency markets.
Kazakhstan is taking concrete steps toward the development of its first nuclear power plant, with the country now in the pre-project phase, according to Rinat Okasov, Deputy Director General of Kazakhstan Nuclear Power Plants LLP (KAEŞ).
Germany's finance ministry is pushing forward with its 2025 and 2026 budget plans, focusing on fiscal savings while addressing security and economic challenges, according to a recent government document.
Finance leaders from the Group of Seven democracies will strive for a show of unity when they meet this week on topics other than U.S. President Donald Trump's tariffs, including economic security, Ukraine and artificial intelligence cooperation.
Nvidia (NASDAQ: NVDA) announced a significant move to expand its influence in AI hardware on Monday, revealing plans to sell its NVLink Fusion technology to other chipmakers, enabling faster communication between artificial intelligence (AI) chips.
The U.S. Supreme Court has granted a request from the Trump administration to lift protections under the Temporary Protected Status (TPS) program for approximately 350,000 Venezuelans, potentially opening the door to future deportations while litigation continues.
Lithuania has taken legal action against Belarus at the International Court of Justice (ICJ), accusing Minsk of organizing irregular migrant crossings and violating international obligations.
Indonesia has raised the alert level to the highest for Mount Lewotobi Laki Laki after it erupted eight times over the weekend, the country’s volcanology agency said.
As South Western Railway becomes the latest operator to be renationalised under Great British Railways (GBR), questions remain about whether these changes will lead to better services or lower fares.
In Malaysia, rivers are under threat from invasive fish species that have spread widely, harming native wildlife and local ecosystems.
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