IMF Warns of Risks as Global Finance Chiefs Meet in DC

Finance ministers and central bankers from around the world are gathering in Washington this week for the annual meetings of the International Monetary Fund (IMF) and the World Bank, amid renewed trade tensions between the United States and China.

The meetings coincide with Washington’s preparations to formalize a financial aid package of up to US$20 billion (MX$368 billion) for Argentina during President Javier Milei’s visit to the White House on Tuesday. Argentina, which already has an open credit line with the IMF, is expected to be one of the focal points of this year’s discussions.

IMF Managing Director Kristalina Georgieva said the global economy remains resilient but warned that persistent risks continue to threaten growth. “The world economy has resisted acute tensions and is better than expected, but worse than needed,” Georgieva said in her opening address.

She highlighted growing uncertainty linked to tariffs and warned that the global economy’s resilience “has not yet been fully tested.” Georgieva also expressed concern about a potential “violent correction” in the stock prices of companies tied to artificial intelligence, comparing current valuations to levels seen during the dot-com bubble.

In its preliminary outlook, the World Bank projected Latin America and the Caribbean to grow 2.3% this year, slightly above 2024 levels. However, the region remains subdued amid a global economic slowdown, lower commodity prices, and heightened uncertainty. Brazil’s growth is expected to ease to 2.4%, while Mexico’s economy is forecast to expand by just 0.5%.

Georgieva urged Latin America to capitalize on global supply chain realignments and accelerate structural reforms. She pointed to Argentina as a model for fiscal adjustment, encouraging the region to “aspire to more” and move faster to capture emerging opportunities.

Trade tensions between Beijing and Washington resurfaced this week after China announced new controls on the export of rare earth elements and related refining technologies. These materials are critical for the digital, renewable energy, and defense industries — sectors where China dominates global supply chains.

In response, US President Donald Trump called China’s move “extremely aggressive” and threatened to impose a 100% tariff on Chinese goods, in addition to the 30% tariffs introduced in May. Despite the sharp rhetoric, Trump later softened his tone, saying he wanted “to help China, not hurt it,” and predicted relations with President Xi Jinping would stabilize.

The IMF is expected to release its World Economic Outlook report on Oct. 14, providing an updated assessment of global growth trends amid inflationary pressures, shifting trade policies, and evolving technology markets.