Running through 18 October, the gatherings bring together policymakers, economists, and development leaders to assess the state of the world economy, unveil key forecasts, and debate strategies for inclusive growth and financial stability.
Coinciding with a high-profile peace summit in Sharm El-Sheikh aimed at ending the war on Gaza, the meetings reflect the growing intersection between diplomacy and economic recovery, especially for countries directly affected by the war.
With the IMF’s flagship World Economic Outlook due Tuesday and the Regional Economic Outlook for the Middle East and Central Asia set for Thursday, the week is expected to shape the narrative for global cooperation in a time of uncertainty and transition.
An Egyptian delegation, chaired by Governor of the Central Bank of Egypt (CBE) and Egypt’s Governor at the IMF Hassan Abdalla, will be participating in the meetings.
The delegation is anticipated to present the country’s latest economic developments.
These include the recent upgrade of Egypt’s credit rating by S&P Global Ratings and the affirmation of its “B” rating with a stable outlook by Fitch Ratings.
They also include the positive economic performance of the Egyptian economy in the FY2024/2025, which ended at end of June, and the new economic narrative Egypt sets for its economy through 2030.
The narrative is designed to chart a map for the Egyptian economy with a focus on five priority sectors in a bid to avoid securing additional loans from the IMF in the future.
This effort is meant to pave the way for the completion of the fifth and sixth reviews of Egypt’s current $8 billion Extended Fund Facility (EFF) and the first review of its newly approved $1.3 billion Resilience and Sustainability Facility (RSF).
All three reviews are expected to be completed before the end of the year.
In this respect, the fund has responded to the Egyptian side's request to extend the maturity of the EFF loan programme to November 2026, instead of September 2026. Primerly, Egypt requested to prolong the programme for one year to end in September 2027.
Last week, the World Bank upgraded its growth projections for Egypt, forecasting real GDP growth of 4.3 percent in the current FY2025/2026, which started on 1 July 2025, and 4.8 percent in FY2026/2027, an increase of 0.7 percent and 0.2 percent, respectively, from its April outlook.
At a pre-meeting event, IMF Managing Director Kristalina Georgieva said the upcoming World Economic Outlook (WEO), schedualed for Tuesday, points to a surprisingly resilient global economy. Growth is expected to slow only marginally in 2025 and 2026 despite persistent geopolitical tensions, inflationary pressures, and trade disruptions.
According to the WEO preview, this resilience is underpinned by four key factors: stronger policy fundamentals, agile private sector responses, less severe tariff impacts than initially feared, and broadly supportive financial conditions.
The report highlights that many countries, particularly emerging markets, have made significant strides in strengthening their macroeconomic frameworks.
These include more credible monetary policies, expanded local currency bond markets, and the adoption of fiscal rules.
During the pandemic, swift and coordinated fiscal action helped cushion economies from lasting damage and laid the foundation for more robust recoveries.
Private sector adaptability has also played a pivotal role. Businesses have responded to trade uncertainty by frontloading imports, restructuring supply chains, and leveraging digital tools such as artificial intelligence to navigate volatility.
Corporate balance sheets remain strong, and many firms now treat disruption as a strategic challenge rather than a threat.
On the trade front, the anticipated impact of tariffs has been more muted than expected. The US trade-weighted tariff rate has declined from 23 percent in April to 17.5 percent, easing pressure on global trade flows.
Meanwhile, most other economies have maintained stable tariff regimes, with limited retaliation.
While financial conditions remain broadly supportive, the WEO cautions that continued policy discipline and institutional reform will be essential to sustain momentum and mitigate future risks. The global economy may be bruised, but it is far from broken.
The IMF calls for coordinated global action as the world economy faces a delicate balance of resilience and risk. While trade continues to flow and financial conditions remain broadly supportive, the full impact of recent tariff shifts and market distortions is yet to unfold.
In the United States, compressed profit margins could soon translate into higher consumer prices, potentially stoking inflation and complicating monetary policy. Meanwhile, diverted goods from the US market may flood other regions, triggering a second wave of tariff responses and unsettling global trade dynamics.
Despite these pressures, the IMF notes that most of the world’s trade still adheres to established rules, a fragile but vital foundation for growth. The fund urges policymakers to preserve this framework, warning that protectionist impulses could undermine recovery and deepen global divides.
Financial markets, buoyed by optimism, are approaching valuation levels reminiscent of the dot-com era.
The IMF cautions that a sharp correction could abruptly tighten financial conditions, exposing vulnerabilities and placing particular strain on developing economies.
Job creation is already showing signs of softening, masked by easy liquidity that may not last.
In this rapidly evolving multipolar world, the IMF outlines three medium-term policy priorities: lifting growth sustainably, repairing public finances, and reducing excessive imbalances.
Global growth is projected to average just three percent over the medium term, down from 3.7 percent before the pandemic.
With China’s momentum slowing and India emerging as a new engine, the path forward hinges on unlocking private sector productivity. That means governments must reinforce the pillars of free markets: property rights, rule of law, transparent data, and strong institutions.
The fund also calls for a regulatory overhaul to eliminate red tape and unleash entrepreneurial energy, especially in economies where startups struggle to launch or scale.
In Asia, deeper regional integration and service sector reform could raise GDP by 1.8 percent. In Sub-Saharan Africa, business-friendly reforms and progress on the Continental Free Trade Area could lift real GDP per capita by over 10 percent.
Europe, meanwhile, is urged to move beyond rhetoric and implement structural reforms to match the dynamism of its global peers.
On the fiscal front, the IMF warns that global public debt is on track to exceed 100 percent of GDP by 2029. Rising debt burdens inflate interest payments, constrain spending, and erode governments’ ability to respond to future shocks.
Development assistance from advanced economies continues to decline, leaving low-income countries to rely more heavily on domestic resource mobilization. The fund recommends setting a minimum tax-to-GDP target of 15 percent to strengthen fiscal resilience.
Current account imbalances are also resurfacing, posing risks to financial stability. In the US, high consumption and fiscal deficits require urgent action to rein in debt and encourage household saving.
In China, the IMF advocates for a fiscal-structural package to boost domestic demand, reduce reliance on industrial policy, and support social safety nets.
Germany’s recent shift toward expansive fiscal policy is seen as a positive step toward correcting its surplus and revitalizing private investment.
As the IMF closes its message, it returns to the aspirations of young people and the need for inclusive opportunity. The fund emphasizes that sound policies, anchored in smart regulation, strong institutions, and robust safety nets, are essential to building resilience and accelerating growth.
In a world of uncertainty, collective action remains the most powerful tool to turn shared dreams into reality.
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