The Annual Spring Meeting of the IMF Review
Catherine Alexander
Partner and Mortgage & Protection Adviser at GDA
The International Monetary and Financial Committee (IMFC) is responsible for advising and reporting to the IMF Board of Governors as it manages and shapes the international monetary and financial system. The IMFC also monitors developments in global liquidity and the transfer of resources to developing countries; considers proposals by the Executive Board to amend the Articles of Agreement; deals with unfolding events that may disrupt the global monetary and financial system; and advises on any other matters that may be referred to it by the Board of Governors.
The 2025 Spring Meeting of the World Bank Group (WBG) and the International Monetary Fund (IMF) took place from the 21st until the 26th of April in Washington D.C., where the committee discussed matters affecting the global economy. The outcomes of this meeting provide guidance for the IMF’s work program during the half year leading up to the next meeting.
It was reported that many participants in the International Monetary Fund and World Bank Spring Meetings had a sense that the US administration was still conflicted in its demands from trading partners hit with his tariffs, and no deals were finalized over the course of the week despite the Trump administration having 18 written proposals and a full diary of negotiations planned. The US administration's most substantial trade negotiations during the week were with Japan and South Korea, but the results were still inconclusive. Specific currency targets for the Japanese yen were not discussed, but both countries' currency policies are expected to be part of future talks as the U.S. sees currency weakness against the dollar as a nontariff barrier to American exports. The IMF took a slightly more optimistic view of the economic fallout from the US imposed tariffs, slashing growth forecasts for most countries in its World Economic Outlook but stopping short of predicting recessions.
Resurgent debt worries took a back seat to tariff talks and Reza Baqir, a former Pakistan central bank governor who now heads sovereign debt advisory at Alvarez & Marsal, said: "For many developing countries, especially in the Global South, there is a real sense of despair that the agenda on Financing for Development is really not center-stage.” World Bank chief economist Indermit Gill also sounded an alarm on rising debt levels for emerging markets, noting that tariffs had prompted a sharp slowdown in trade and foreign direct investment that are crucial to developing country growth. He and other World Bank and IMF officials told countries to cut their own tariffs to boost growth prospects.
Policymakers did breathe a sigh of relief when US Treasury Secretary Scott Bessent expressed US support for the IMF and the World Bank, declaring that they have "enduring value" but criticizing their "mission creep" into climate, gender and equality issues. Bessent said that he wanted to refocus them on their core missions of economic stability and development, with expanded World Bank energy financing options and an end to China loans.
In summary, the key outcomes were as follows:
The IMF lowered its global growth forecast for 2025, reflecting the impact of trade tensions and other economic headwinds.
Concerns about the recent surge in US tariffs under President Trump's administration were a significant point of discussion. The IMF emphasized the urgency of resolving trade disputes.
Despite the challenges, there was a consensus on the need for continued multilateral cooperation within international financial institutions.
The World Bank is working on evolving its mission and expanding its lending capacity to address global challenges, including climate change.
A new initiative to help debt-distressed countries restore debt sustainability was discussed.
The World Bank and IMF were urged to prioritize climate action and sustainable development.
The World Bank is focusing on job creation and is expected to announce a retooled Private Sector Investment Lab.
The IMF is likely to acknowledge the worsening global debt crisis and may consider expanding eligibility for debt relief programs.
The next meeting of the IMF will run from the 13th until the 18th of October 2025 in Washington D.C.
References
2025. IMF Spring Meeting Website: https://meetings.imf.org/en/2025/Spring.
2025. Reuters News Coverage. https://www.reuters.com.
This article is for general information and does not constitute personal financial advice. If you’re unsure what’s best for you, seek independent financial advice.
