The IMF is forecasting somewhat slower growth rates for 2012 and 2013 than last spring, with significantly different trends expected for individual country groups. While emerging and developing countries are still likely to post quite high levels of growth, the recovery in industrialised countries will remain weak. The subdued outlook for industrialised countries is primarily due to Europe. Only a modest recovery is expected by the IMF for 2013 in the euro area and the United Kingdom. In contrast, the United States and Japan are looking more robust. Despite comparatively attractive growth rates, some short-term cooling is expected also in key emerging market economies such as China and Brazil.
According to the IMF, effective monetary and fiscal policy measures are needed in the short time in order to avert the global economic risks. Effective structural measures are primarily called for in the medium term. In Europe, these include budget restructuring, structural reforms that promote growth as well as strengthening of financial stability. Furthermore, the IMF is advocating steps towards greater European integration. In the United States and Japan, it is calling primarily for credible steps towards medium-term fiscal consolidation.
The way for calculating IMF shares and voting rights was revised for the first time in 2008. This prompted a substantial shift of voting rights towards major emerging countries. Another revision is to be implemented by the end of January 2013. Together with other countries, Switzerland is committed to ensuring that voluntary financial contributions to the IMF are reflected and a country's economic and financial openness is better portrayed.
IMF credit to low-income member countries is extended on preferential terms from a special IMF fund. These interest subsidies are financed by means of bilateral contributions and IMF resources. It was decided back in 2009, in the wake of the financial crisis, to increase these resources. Some of this is to be financed with the proceeds of IMF gold sales.
The key discussions of the World Bank's Development Committee will focus on jobs, which is also the topic covered by the 2013 World Development Report. This report demonstrates how a targeted combination of policy measures that correspond to the circumstances of the country in question can generate sustainable growth and promote job creation.
Natural disasters are already costly for the economy. These costs are likely to increase further in the future, making risk management all the more important. The World Bank plays a key role in the areas of crisis and climate risk management. It has prepared an action plan that includes risk management considerations in its activities and strategies. Switzerland is supportive of efforts to take even greater account of risk management in World Bank activities.
The World Bank has published an update on the implementation of the gender equality agenda for the Annual Meetings. Switzerland supports the World Bank Group's commitment to implementing gender equality in development policy. It acknowledges the progress already made and considers the prioritisation as appropriate, with particular attention paid to problematic regions, countries and segments of the population.
Bilateral meetings
The IMF and World Bank Annual Meetings also offer an opportunity for numerous bilateral meetings at ministerial level. President Widmer-Schlumpf will meet for example Yoshihiko Noda, the Prime Minister of Japan, for an exchange of views on political and economic issues.
Address for enquiries:
Mario Tuor, Head of Communications, State Secretariat for International Financial Matters,
tel. +41 31 322 46 16
Philippe Sas, ad interim Head of the Division for Multilateral Cooperation, State Secretariat for Economic Affairs,
tel. +41 31 324 08 19
Olivier Bürki, Head of the Global Institutions Division, Swiss Agency for Development and Cooperation,
tel. +41 31 322 86 09
Publisher:
The Federal Council
Federal Department of Foreign Affairs
Federal Department of Economic Affairs, Education and Research
Federal Department of Finance
