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Imf

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IMF warns war in Iran will leave a lasting drag on world growth
world2 hours ago

IMF warns war in Iran will leave a lasting drag on world growth

The IMF lowers its global growth outlook and flags the Iran conflict as a lasting drag on the world economy, planning between $20–$50 billion in emergency balance‑of‑payments support while cautioning there will be no neat return to pre‑war conditions; the crisis drives energy costs higher, disrupts supply chains and undermines market confidence, with about 45 million people facing food insecurity. The World Bank also signals slower regional growth and says up to $25 billion can be mobilized quickly for affected developing countries, with as much as $60 billion available over the longer term.

IMF Chief Warns Mythos AI Could Spark Global Cyber Threats to Finance
business11 hours ago

IMF Chief Warns Mythos AI Could Spark Global Cyber Threats to Finance

IMF managing director Kristalina Georgieva warns Anthropic’s Mythos poses major cybersecurity risks to the global financial system, urging urgent guardrails and international cooperation as regulators and central banks monitor the vulnerabilities exposed by Mythos Preview, with policymakers engaging Wall Street after an urgent regulatory meeting.

IMF approves $8.1B loan to stabilize Ukraine and back reconstruction
world1 month ago

IMF approves $8.1B loan to stabilize Ukraine and back reconstruction

The IMF’s executive board approved an $8.1 billion, four-year loan for Ukraine, with $1.5 billion disbursed immediately, designed to anchor a $136.5 billion international support package, stabilize Ukraine’s balance of payments, and bolster reconstruction and growth ahead of EU accession. Talks in Geneva on postwar reconstruction and a planned trilateral meeting with the US and Russia are aimed at advancing a settlement, as Ukraine and Russia continue to exchange security incidents and cross-border drone activity.

IMF urges Japan to persist with rate hikes and resist tax cuts
economy1 month ago

IMF urges Japan to persist with rate hikes and resist tax cuts

The IMF told Japan to keep raising interest rates toward a neutral stance and refrain from further fiscal loosening, warning that trimming the 8% consumption tax on food would erode fiscal space and heighten risk from shocks. With inflation above target, the BOJ is gradually winding down stimulus and is expected to reach a neutral policy by 2027, while Japan must maintain a credible medium-term fiscal framework amid high debt and rising interest costs; any tax relief should be limited and temporary, and liquidity should be safeguarded with possible exceptional interventions, supported by a flexible exchange rate to absorb external shocks.

world2 months ago

IMF drills for potential dollar rush

The IMF is preparing for extreme scenarios, including a rapid sell-off of dollar-denominated assets, as Georgieva says the Fund models “unthinkable” events. With Trump tariffs and criticisms of the Fed, confidence in the dollar has waned, gold prices surged, and BRICS nations are pursuing de-dollarisation. Georgieva suggested Europe issue more common debt to offer a safe asset alternative, though political resistance makes this difficult. The dollar’s status as the global reserve currency is not expected to change imminently due to the size and liquidity of US debt markets.

Markets Brace for a World in Flux Amid Trump’s Policy Push
business2 months ago

Markets Brace for a World in Flux Amid Trump’s Policy Push

Global markets are rattled by Donald Trump’s aggressive policy moves, prompting questions about whether geopolitical shifts will escalate or fade and how they’re priced into assets. Despite volatility, IMF growth upgrades and upbeat Q4 earnings suggest fundamentals could support a rebound, even as investors weigh a potential end to the NATO era and a tripolar world order centered on the U.S., China, and Russia. The piece notes that persistent uncertainty, coupled with passive investing, has kept volatility muted, making the task of pricing regime change especially challenging.

IMF calls for retraining and protections as AI reshapes jobs
world2 months ago

IMF calls for retraining and protections as AI reshapes jobs

An IMF analysis of the US, UK, Germany, Denmark, Brazil and South Africa finds AI-related skill demand is boosting wages but not net employment in the most exposed jobs; five years on, regions with higher AI-skill demand show a 3.6% employment gap. The IMF urges stronger retraining, social protection and education reform so workers can leverage AI rather than compete with it, ahead of Davos.