As world leaders arrive for G7, #G20, IMF and World Bank Meetings, the IMF downgraded economic growth to 2.7%. As the global economy grapples with the Ukraine war, pandemic, a food crisis and inflation, the IMF warns of recession in two reports. #IMFMeetings It seems likely that we are heading into a recession. The US and other large economies will see contractions and this impacts the entire global economy.

The IMF needs more tools to fight modern, potentially more frequent global crises, Treasury Secretary Janet Yellen argued in a speech to the Atlantic Council this week. #IMFMeetings #G20 Health, climate and development challenges are creating worse economic shocks and leading to crises that are harder to solve. In the face of crisis, countries with more resources can act forcefully while poor countries get left behind.

The IMF released its World Economic Outlook Update forecasting a global economic downgrade and persisting challenges for the world economy. As the pandemic continues the IMF again has downgraded its outlook on the global economy. The big story emerging from the IMF’s report is that variants like Omicron will continue to disrupt the global economy.

On Friday, the International Monetary Fund's Board discusses the proposed "Resilience and Sustainability Trust." The new vehicle could aid developing countries with pandemic response and challenges faced from climate change with low-interest, long-term loans. The IMF proposal is another way that wealthy countries can use their surplus pandemic response funds to support developing countries struggling with the COVID crisis, poverty and climate challenges.

The IMF World Economic Outlook report lowered economic growth projections for wealthy and poor countries. The IMF forecasts 5.9% global economic growth. #IMFMeetings What's most striking is that we are looking at economies declining both in wealthy and poor countries. Because the pandemic is impacting so many developing economies, the United States and other wealthy economies face supply shortages.

As developing countries struggle to access vaccines, the US announced support to eliminate trade barriers on vaccine access. In a statement Wednesday, the Biden Administration called for a waiver on COVID-19 vaccine intellectual property patents at the World Trade Organization. Less than 2% of vaccines reached poor countries. Intellectual property rights prevent developing countries from making their own vaccines or accessing generic versions.

The IMF states that uneven vaccine access is a main cause of global economic uncertainty.

Big news on our global coronavirus response efforts.

Treasury notified Congress of its support for $650 billion in IMF global reserves, also known as Special Drawing Rights (SDRs), to assist developing countries struggling with the coronavirus crisis. US law requires a ninety-day advance alert to Congress before the US votes for SDRs with the IMF board.

The notification paves the way for the US to vote in favor of these funds that developing countries need.

Breaking:

G7 finance ministers agreed to create emergency reserve funds for developing countries wrestling with coronavirus economic impacts. The funds are likened to a type of currency the International Monetary Fund creates, called Special Drawing Rights (SDRs). This is the strongest public statement to date from G7 countries on the need for SDRs to confront the COVID economic crisis that is ravaging developing countries.

Treasury Secretary Janet Yellen, @JubileeUSA and some of the highest-ranking religious leaders met on global COVID response on Tuesday. The high-level roundtable discussion focused on emergency SDR reserve funds, debt policies, aid, climate change, Puerto Rico relief and bankruptcy, transparency and tax proposals to prevent future crises.