How geopolitics is redrawing the Global South’s economy
The 2026 IMF and World Bank Spring Meetings highlighted the global economy's prolonged turbulence due to geopolitical tensions and lack of robust multilateral cooperation. The meetings underscored the challenges faced by emerging markets and developing economies amidst slowing growth and rising inflation.
The 2026 Spring Meetings of the IMF and World Bank took place from April 13 to 18 amid geopolitical tensions and persistent inflation. The global economy is experiencing prolonged turbulence without robust multilateral cooperation. Global growth remains sluggish, with the IMF forecasting 3.1% growth for 2026 and 3.2% for 2027. Geoeconomic fragmentation has become entrenched, with trade and investment driven by geopolitical alliances rather than cost and efficiency. Emerging markets face tightening external financing conditions, rising borrowing costs, and reduced export revenues. Countries like Bangladesh are particularly vulnerable due to high inflation and limited fiscal capacity. The IMF and World Bank announced increased support, including new initiatives for climate resilience and vital services.
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