The Middle East war, the energy crisis and rising interest rates are heightening threats to the global economy. These issues will be central to the annual meetings of the International Monetary Fund (IMF) and the World Bank in Bangkok.
According to FinFly, citing Reuters, delegates from finance ministries around the world will gather in the Thai capital from October 12 to 18. For the first time in three years, the event will not be held in Washington.
A key topic of discussion will be the US-Israeli war against Iran, now in its eighth month, and its impact on inflation.
According to IMF Managing Director Kristalina Georgieva, 18,000 people have registered for the meetings. That is 4,000 more than at the previous overseas event in Morocco in October 2023.
World Bank President Ajay Banga noted that after Iran closed the Strait of Hormuz, the global economy proved more resilient than expected. Nevertheless, pressure on it is growing.
About 20% of global oil supplies pass through the Strait of Hormuz. Shipping disruptions on this strategic route have affected fuel prices, inflation and international trade.
According to Banga, the situation is also complicated by rising diesel and fertilizer prices, as well as the possible consequences of a powerful El Niño.
Another important topic at the meetings is the growth of government debt. According to IMF data, global sovereign debt has reached its highest level since World War II and could exceed 100% of global GDP by 2030.
Developing countries are particularly hard hit: they face high interest rates, capital outflows and rising debt refinancing costs. Keeping rates high in the US could accelerate the outflow of investment from emerging markets.
US Treasury Secretary Scott Bessent is not expected to attend the meetings. Instead, the US delegation will be represented by two senior officials.
US Federal Reserve Chairman Kevin Warsh, by contrast, will take part in the event and will hold an open discussion with Kristalina Georgieva on October 16.
The meetings will focus primarily on the economic consequences of the war, energy security, inflation and the impact of growing debt burdens on the most vulnerable countries.
