Global Finance Leaders Face Uncertainty as US Election Nears

Next week, finance leaders from around the world will gather in Washington for the annual meetings of the International Monetary Fund (IMF) and the World Bank. One big question on their minds: Who will win the upcoming U. S. presidential election and how will that affect global economic policies? Both candidates, Republican nominee Donald Trump and Democratic nominee Kamala Harris, have been quiet about their plans for these financial institutions. However, their differing views on trade and tariffs are sure to influence the discussions. Kristalina Georgieva, the IMF's managing director, hinted at the stakes in a recent speech. She warned that major countries are turning to protectionism, which could hurt global economic growth. Trump, for instance, has talked about imposing high tariffs on Chinese goods and other imports. Economists worry that this could lead to higher prices for American consumers and slow down the economy. Trump has also been critical of multilateral institutions and has made changes to trade deals during his term. The World Bank's president, Ajay Banga, acknowledged Trump's impact on investment in the International Bank for Reconstruction and Development. However, he isn't sure yet how the next administration's policies will differ. Harris, on the other hand, has been more supportive of international cooperation. Though she hasn't detailed her views on the IMF or World Bank, she has continued some of the Biden administration's tariffs on China. Both candidates' approaches to trade and international relations will shape the future of these financial institutions. Georgieva stressed the need for global cooperation despite national security concerns. She believes that without it, the world economy could further fracture.