Faisal Islam: What I learned from a week with the world's top finance leaders
At the IMF meeting in Bangkok this week finance and business leaders grappled with uncertainty.
By BBC News
Finance leaders meeting in Bangkok have been grappling with uncertainty over the global economy, including rising debt, energy costs and the rapid growth of artificial intelligence.
The discussions took place during the annual meetings of the International Monetary Fund and the World Bank, which ran from Monday to Saturday in the Thai capital.
BBC economics editor Faisal Islam attended the meetings and reported that uncertainty about the outlook was shared by senior officials, despite some signs of resilience in the world economy.
The IMF’s latest assessment upgraded its forecast for UK growth this year to 1.3%. That placed the UK joint second among the G7 economies, although the outlook for next year was reduced and higher energy prices were expected to add to inflationary pressure.
The UK’s plans to reduce borrowing were also singled out for praise. IMF managing director Kristalina Georgieva said the UK had taken decisive action to reduce its debt and deficit, while IMF chief economist Silvana Tenreyro said the country’s approach stood out among the major G7 economies.
The IMF’s figures indicated a 3.9 percentage-point fall in the UK deficit between 2025 and 2031. Several other G7 countries were expected to see their deficits increase over the same period.
The meeting’s wider concerns included the possibility of an unstable boom in artificial intelligence, pressure from large public debts and the effect of conflict in the Middle East on energy and trade.
World leaders and financial policymakers also discussed the need for governments to bring budgets under control, while dealing with inflation and protecting vulnerable households.
The IMF’s message to the UK was to stay on course with its fiscal plans. The findings came as the Chancellor prepared for the Budget.