Discuss Global Debt The International Monetary Fund (IMF), World Bank (World Bank), and India are planning meetings to discuss global debt. This meeting also aims to bring together China’s creditors and countries that make loans so that debt levels do not increase. Tuesday (14/2/2023), this meeting will held on Friday. Participating borrowing countries range from Ghana, Ethiopia and Zambia.
This information was obtaine from a source who knows about this matter without wanting to be name.
Creditor countries including France, the United States (US), Britain and Japan are also schedule to participate. Not only that, the Institute of International Finance, a global association for the financial industry and private sector creditors took part in a virtual meeting this Friday.
IMF spokesperson revealed that this meeting aims to discuss the shortcomings that exist in the current debt restructuring. However, the IMF did not mention which countries were involve. In fact, the World Bank and the US Treasury Department declined to comment on this matter.
The Paris Club, made up of traditional Western creditor countries joining China, India and Saudi Arabia in 2020, under the auspices of the Group of 20 or G20 forum, has agreed on a roadmap known as the Joint Framework for restructuring the debts of developing countries.
are having trouble on a case by case basis.
Unfortunately, the performance of this group has experienced delays from some low-income countries. As a result, policymakers are looking for other ways to provide relief to poor and middle-income countries that face hundreds of billions of dollars in debt as they come due. Later, the IMF and World Bank which will take place this weekend will also ensure equality of treatment between official and private creditors, and handle the resolution of technical and legal issues.
The International Monetary Fund (IMF) predicts inflation in 84 percent of countries will ease in 2023 compared to last year, but warns that it will remain above pre-pandemic levels through 2024. IMF Chief Economist Pierre-Olivier Gourinchas said developing country economies as a whole are expecte to grow 4 percent in 2023 and 4.2 percent next year. This figure is about three times the growth of developed countries. ”
China and India will contribute around half of world growth in 2023
” explained Gourinchas in his January 2023 World Economic Outlook presentation, Tuesday (31/1/2023). Gourinchas explained that China and India are prominent emerging markets. China’s economy is expecte to grow 5.2 percent in 2023 and 4.5 percent next year, higher than 3 percent in 2022.
The IMF estimates India’s economy will grow 6.8 percent in the current fiscal year ending in March and slow to 6.1 percent before rebounding to 6.8 percent the following year. “Since November, the dollar has weakened providing a breath of fresh air to many developing countries, with financial conditions less stringent and inflationary pressures easing.
In addition, the resilience of household needs, declining energy prices, a tight labor market, and the reopening of the PRC are some of the positive factors for China. However, at the same time, the IMF has warned that a war in Russia-Ukraine could affect current forecasts, and China’s economic growth is no exception.