Sources from the German government indicated that, although the threat of a global recession has been averted, growth will continue to be modest. They referred to International Monetary Fund (IMF) forecasts due later in the day. According to one source, the global economy is indeed expanding, but not at a particularly fast pace. In some regions, such as Germany, growth is practically non-existent. This highlighted the need for structural reforms to improve economic prospects.
Looking ahead, sources expressed concern over the unsatisfyingly low medium-term outlook for global growth. The sentiment sets the scene for this week's IMF spring meeting in Washington, where discussions are likely to be influenced by recent geopolitical tensions, including Iran's attack on Israel. The meeting will host G20 finance ministers and central bank governors for two focused discussions on climate finance and strengthening international development banks.
In an op-ed for Handelsblatt, German Finance Minister Christian Lindner and Bundesbank President Joachim Nagel called on the IMF to return to its primary responsibilities. They argued that the financing of the development policy agenda should be left to institutions like the World Bank, and not to the IMF. Despite these concerns, no official announcement is expected to emerge from the meetings.