The 2024 World Bank and International Monetary Fund (IMF) Annual Meetings, which took place from October 21st to 26th, closed after an intense series of discussions and debates that touched on a wide range of global economic challenges and opportunities.
From the slow recovery of the global economy post-pandemic to regional growth disparities and the complexities of remittances, these meetings underscored the pressing need for international collaboration, reform, and investment in resilience-building measures.
As the meetings concluded, it was evident that the world remains precarious, grappling with geopolitical tensions, rising protectionism, and significant economic uncertainty, especially in the 2024 U.S. elections. Meanwhile, central bankers, finance ministers, and international organisations left the table with fresh mandates to stabilise growth and accelerate reforms aimed at fostering long-term sustainable development.
Fiscal Buffers, Surcharges, and the IMF’s ‘Historic Firsts’
The IMF Managing Director Kristalina Georgieva set the tone on the final days of the meetings by addressing the need for countries to rebuild fiscal buffers and adopt growth-enhancing reforms. Her speech, delivered at the IMFC Plenary on October 25th, was one of the high points of the meetings, as she outlined three ‘historic firsts’ for the IMF aimed at easing the financial burden on borrowing countries.
First, she announced that the IMF had successfully reached its precautionary balance targets, providing a crucial safety net in case of future global economic downturns. Second, she highlighted the reduction of charges and surcharges levied on borrowing countries, a move expected to save vulnerable economies approximately $1.2 billion. These reductions come as a relief to many low- and middle-income countries, which have long criticised the IMF’s surcharge policies, claiming they exacerbate financial hardships. Lastly, she emphasised the IMF’s intention to use its net income to boost lending capacity, particularly for low-income countries that are struggling under the weight of debt and sluggish economic growth.
These ‘historic firsts’ were seen as a major step in improving the IMF’s relevance and responsiveness to global financial needs, especially in the Global South. However, the broader message of fiscal discipline was clear: countries must take responsibility for their economic destinies by building buffers, investing in structural reforms, and tightening their fiscal policies to safeguard against potential shocks.
IMFC Chair: Highlighting Progress for Low-Income Countries
Mohammed Aljadaan, Chair of the IMF’s International Monetary and Financial Committee (IMFC), echoed Georgieva’s sentiments, emphasising the importance of continuing reforms aimed at helping low-income countries. He pointed to the IMF’s reviews of the Poverty Reduction and Growth Trust and the Charges and Surcharge Policy as milestones that would promote progress in alleviating the financial burdens on borrowing countries.
Aljadaan stressed that while these reforms were crucial, they only scratched the surface of the global economic issues at hand. He highlighted the need for continuous, targeted reforms and closer collaboration between advanced economies and developing nations to address the rising inequalities exacerbated by the pandemic and subsequent economic slowdown.
Aljadaan’s message resonated particularly with Sub-Saharan African countries, where the IMF projected sluggish growth rates of 3.6% for 2024, despite a slight improvement to 4.2% in 2025. While budget deficits in the region are narrowing and debt-to-GDP ratios are stabilising, these countries face persistent development challenges, including limited access to finance, high inflation, and underinvestment in critical infrastructure.
Regional Development Banks: A Vital Complement to Global Institutions
One of the recurring themes during the meetings was the vital role that Regional Development Banks (RDBs) played in complementing the work of the IMF and World Bank. European Bank for Reconstruction and Development (EBRD) President Odile Renaud-Basso emphasised RDBs’ agility and localised focus, noting that these institutions are well-positioned to tackle the unique challenges faced by different regions.
In particular, RDBs have effectively addressed infrastructure gaps, promoted private-sector development, and fostered regional integration, especially in areas where larger global institutions may need more support with bureaucratic inertia or where a one-size-fits-all approach falls short. The discussions highlighted how RDBs can be key in achieving sustainable development goals by tailoring solutions to regional needs.
Inflation, Geopolitics, and Central Bank Challenges
Inflation remained one of the most pressing issues on the table, particularly as central banks worldwide grapple with the challenge of bringing inflation down without triggering a recession. The panel discussion, ‘Monetary Policy in a Shock-Prone World,’ brought together some of the most influential voices in monetary policy, including IMF First Deputy Managing Director Gita Gopinath and South African Reserve Bank Governor Lesetja Kganyago.
Gopinath credited central banks with anchoring inflation expectations but cautioned that the road ahead would not be easy. She stressed that geopolitical risks, such as the ongoing war in Ukraine and tensions in the Middle East, coupled with persistent fiscal deficits in many countries, could further complicate efforts to manage inflation.
Governor Kganyago offered a more optimistic view, arguing that countries that acted early to curb inflation are now reaping the benefits. He emphasised the need for a balanced approach between macroeconomic stability and structural reforms, urging countries to stay the course with fiscal prudence while investing in long-term growth strategies.
The discussions on inflation were particularly pertinent for Sub-Saharan Africa, where supply chain disruptions, rising energy costs, and currency depreciation have compounded inflationary pressures. Central bankers in the region are faced with the difficult task of balancing inflation control with the need to stimulate economic growth and address high levels of unemployment.
Regional Growth Disparities and Opportunities
The meetings painted a mixed picture of global economic growth, with significant regional disparities. While Asia-Pacific growth was revised upward, largely driven by strong domestic demand in advanced economies and resilience in China and India, other regions faced more sobering prospects.
For instance, economic growth in the Middle East and North Africa (MENA) was projected at just 2.1% for 2024, with significant uncertainty due to ongoing conflicts and OPEC+ production cuts. Meanwhile, growth in Latin America is expected to decelerate from 2.6% in 2024 to 2.2% in 2025, with calls for structural reforms to reignite economic dynamism in the region.
Europe, too, faced several challenges, particularly around trade and protectionism. Spanish Finance Minister Carlos Cuerpo stressed the need for Europe to assert its independence in trade matters, particularly in the face of increasing tariffs and protectionist policies from major global powers. Cuerpo advocated for greater reliance on multilateral frameworks like the World Trade Organization (WTO) to ensure fair competition, especially in sectors such as electric vehicles.
Irish Finance Minister Jack Chambers echoed these concerns, calling for cooperation between the U.S. and the European Union to counter the rising tide of protectionism. He also addressed Ireland’s ongoing tax dispute with Apple and outlined the government’s plan to invest the recovered funds into infrastructure, a move expected to boost long-term growth prospects.
The Global Gateway and Europe’s Role in Security
European Commissioner Jutta Urpilainen added another layer to the conversation by emphasising the importance of investing in international cooperation for Europe’s long-term security. She highlighted the EU’s Global Gateway strategy, which aims to bridge investment gaps in partner countries and foster resilience to global challenges such as climate change and terrorism.
Urpilainen stressed that the Global Gateway goes beyond traditional aid by focusing on mutually beneficial partnerships, helping Europe and its partners navigate an increasingly complex geopolitical landscape. As Europe grapples with security concerns closer to home, the strategy is seen as a way to address threats at their source while promoting economic stability and growth in developing regions.
The G20 Communiqué: An Elusive Consensus
A recurring criticism during the meetings was the perceived lack of strong, actionable commitments in the G20 communiqué. Many attendees felt the document was too vague and focused more on reports and working groups than on concrete proposals to address the world’s most urgent challenges. Notably, the communiqué failed to offer substantial insights into pressing issues such as Ukraine and the Middle East conflicts.
The absence of China from many critical discussions also raised eyebrows. Given China’s significant role in global growth, its exclusion from some critical conversations left many wondering whether the international community adequately engages with all its primary stakeholders.
