CompaniesHSBC Holdings PLCFollowMARRAKECH, Morocco, Oct 16 (Reuters) – The International Monetary Fund and World Bank wrapped up annual meetings in Morocco on Sunday with some progress towards increasing their lending resources but confronting a new economic shock from the Israel-Gaza conflict.Discussions in the tourist hub of Marrakech, not far from the epicenter of a devastating September earthquake, focused on a flagging global economy weighed down by debt, inflation and conflict, a growing wealth gap between rich and poor countries and floundering efforts to tackle climate change.Here are the main takeaways:SOME FUNDING PROGRESSIMF member countries pledged to increase quota contributions by year-end to help ensure the Fund has adequate lending firepower to respond to another large-scale crisis. They fell short of agreeing to a U.S. plan that would delay shareholding changes that would cede more influence to China, with more talks in the next two months.The World Bank’s governing body approved its new vision statement to “create world free of poverty on a liveable planet,” incorporating its new mission to tackle climate change, and endorsed new steps to allow the use of debt-like hybrid capital and a new portfolio guarantee platform that could together yield up to $100 billion in new lending over a decade.NO CONSENSUS ON MIDDLE EAST CONFLICTHamas’ attack on Israel upset a carefully crafted script for the meetings, but IMF and World Bank leaders were slow to respond to risks presented by the conflict, ranging from higher energy prices, potential trade impacts and a new refugee crisis.G20 finance leaders and the steering committees of both institutions also failed to issue joint communiques due to disagreement over Russia’s invasion of Ukraine war, but unlike the strong condemnation of the Hamas attacks by G7 democracies, the larger, more diverse groups failed to mention the Middle East conflict’LIMPING’ ECONOMYThe new IMF outlook – signed off before the escalation of the conflict between Israel and Hamas – sees global economic growth slowing from 3.5% last year to 3% this year and 2.9% next year, a 0.1% point downgrade from a previous 2024 estimate.Global inflation is seen dropping from 6.9% this year to a still-high 5.8% next. Central bankers signalled readiness to end interest rate hikes if events allow, hopeful that inflation can be finally tamed without too hard a landing. IMF chief economist Pierre-Olivier Gourinchas described the global economy as “limping along, not sprinting”.DEBT SQUEEZEThe heavy debt burdens of advanced economies – from the United States to China and Italy - was a recurrent theme in the meetings, which came after financial markets in recent weeks pushed U.S. bond yields higher. Italian central bank governor Ignazio Visco said there was an impression markets were “reevaluating the term premium” as investors become more nervous about holding longer term debt.JPMorgan chair of global research Joyce Chang put it…
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