Why is it in the news ?
World Economic Outlook asserts India’s economic status as the world’s fastest growing major economy.
What Is the World Economic Outlook (WEO)?
- It is a report released by the International Monetary Fund.
- It analyzes key parts of the IMF's surveillance of economic developments and policies in its member countries and also projects developments in the global financial markets and economic systems.
How frequently is it released ?
The WEO is usually prepared twice a year and is used in meetings of the International Monetary and Financial Committee.
The International Monetary Fund (IMF) is an organization of 189 member countries, each of which has representation on the IMF's executive board in proportion to its financial importance, so that the most powerful countries in the global economy have the most voting power.
- Foster global monetary cooperation
- Secure financial stability
- Facilitate international trade
- Promote high employment and sustainable economic growth
- Reduce poverty around the world
- As part of its World Economic and Financial Surveys, the IMF publishes flagship reports on multilateral surveillance twice a year:
- World Economic Outlook (WEO), Global Financial Stability Report (GFSR), and Fiscal Monitor (FM).
Ministerial Committees of IMF
The IMF Board of Governors is advised by two ministerial committees, the International Monetary and Financial Committee (IMFC) and the Development Committee.
- The IMFC has 24 members, drawn from the pool of 187 governors.
- Its structure mirrors that of the Executive Board and its 24 constituencies.
- As such, the IMFC represents all the member countries of the Fund.
- The IMFC meets twice a year, during the Spring and Annual Meetings.
- The Committee discusses matters of common concern affecting the global economy and also advises the IMF on the direction of its work.
- At the end of the Meetings, the Committee issues a joint communiqué summarizing its views.
- These communiqués provide guidance for the IMF’s work program during the six months leading up to the next Spring or Annual Meetings.
- There is no formal voting at the IMFC, which operates by consensus.
- The Development Committee is a joint committee, tasked with advising the Boards of Governors of the IMF and the World Bank on issues related to economic development in emerging and developing countries.
- The committee has 24 members (usually ministers of finance or development).
- It represents the full membership of the IMF and the World Bank and mainly serves as a forum for building intergovernmental consensus on critical development issues.