ME war, high debt levels to dominate IMF-World Bank meetings

Business Recorder reported that finance officials are set to convene in Bangkok for the annual IMF and World Bank meetings, the first in three years held away from Washington. Talks will be dominated by the Middle East war, now in its eighth month, along with the largest energy supply shock on record and rising interest rates. IMF Managing Director Kristalina Georgieva said 18,000 people have registered, 4,000 more than the Morocco off-site gathering of October 2023.

US Treasury Secretary Scott Bessent will skip the meetings and has sent two senior officials instead, citing domestic engagements, according to a US official. Federal Reserve Chairman Kevin Warsh is due to attend and is scheduled to join Georgieva in a public event on October 16. Some other finance ministers will stay away owing to budget and election commitments, though Georgieva said most central bankers will attend.

According to the IMF, its 3% global growth forecast for 2026 has barely shifted, though Ukraine and Gulf countries are expected to see downgrades. Government borrowing now stands at its highest point since World War Two and is projected to climb past 100% of GDP ahead of 2030. Developing countries are particularly exposed, with $400 billion in external debt payments due in 2026 and interest costs already above 10% of revenue on average.