Energy crisis and debt will be the main topics at the IMF meetings

The annual meetings of the International Monetary Fund and the World Bank are beginning in Bangkok. The main topics will be the ongoing war in the Middle East, rising energy prices and growing government debt. Finance ministers and central bank governors will attend the meetings.

According to World Bank President Ajay Banga, the economy is being affected by several factors at once. Diesel and fertilizer prices are high, a strong El Niño is expected, and available oil reserves are shrinking. This means that in the event of a new supply disruption, pressure on energy prices will increase even further.

According to IMF data, global government debt is at its highest level since World War II and will exceed 100% of world GDP by 2030. The situation is particularly difficult in developing countries. In 2026 alone, they will have to pay about $400 billion to foreign creditors, while spending on average more than 10% of budget revenues on debt interest payments.

The IMF expects global economic growth of 3% this year, though it plans to lower forecasts for several countries. About 18,000 people are expected to take part in the Bangkok meetings.

Source: Reuters