IMF part-1

Between 22–23 August 2025, the United Nations sounded the alarm on famine in Gaza, with the Integrated Food Security Phase Classification (IPC) confirming catastrophic hunger conditions affecting 514,000 people, projected to rise to 641,000 by end-September. UN Secretary-General António Guterres called the crisis a “man-made disaster” and demanded full humanitarian access, while the UK’s Foreign Secretary David Lammy described it as a “moral outrage.” In the same 48-hour period, Palestinian authorities reported 61 killed in Israeli attacks and 8 deaths from starvation, bringing the hunger-related toll to 281, including 114 children, with over 300 injured. Israel rejected the UN’s famine declaration as biased, but UN agencies and aid groups blamed restrictions on relief deliveries for the escalating emergency.

Although the UN Security Council has not held a new session on food security or climate in the past two weeks, its earlier high-level debate in February 2024 remains a reference point. At that meeting, the Council heard that over 330 million people suffered acute food insecurity in 2023, of whom 174 million were directly affected by the interaction of conflict and climate shocks. FAO Deputy Director-General Beth Bechdol warned that 258 million people in 58 countries were facing crisis levels of hunger, while UN climate chief Simon Stiell stressed that without stronger adaptation finance, food insecurity would continue to fuel instability and displacement in fragile states.

At the same time, the United Nations Development Programme (UNDP) has been warning of the erosion of global development progress. In July 2025, outgoing UNDP Administrator Achim Steiner revealed that only 35% of the Sustainable Development Goals are on track, while 18% have actually regressed. In August 2025, Steiner cautioned that sweeping aid cuts by major donors such as the U.S., UK, and Australia are creating “life-threatening consequences” for vulnerable communities, undermining food programs, HIV response, and refugee support. He stressed that unless funding gaps are urgently closed, climate change, conflict, and collapsing governance structures will converge to trigger deeper humanitarian and security crises worldwide.

Part.2

The International Monetary Fund (IMF) released its World Economic Outlook Update in July 2025, projecting global growth at 3.0% for the year, slightly above earlier estimates. This revision reflects improved financial conditions, lower effective tariff rates, and fiscal expansion in major economies. Global inflation is expected to moderate overall, though U.S. inflation is projected to remain above target. The IMF highlighted ongoing risks from geopolitical tensions, higher tariffs, and uncertainty in international trade.

In terms of financial operations, the IMF’s FY 2025 Financial Statements show a total comprehensive income of SDR 3.3 billion (~$4.4 billion), including SDR 2.3 billion from the General Resources Account (GRA) and SDR 0.7 billion in retained investment income. Precautionary balances stood at SDR 25.9 billion. Recent loan agreements include Côte d’Ivoire, where disbursements under the Extended Fund Facility (EFF), Extended Credit Facility (ECF), and Resilience and Sustainability Fund (RSF) total about US$844 million, and Honduras, where the fourth EFF/ECF review is expected to release US$120 million.

Country-specific assessments include Colombia, with 2025 GDP growth projected at 2.5% and inflation easing to 4.5%; Timor-Leste, with growth at 3.9% and inflation at 0.9%; and Eswatini, expected to grow 4.6% in 2026. IMF consultations emphasized continued fiscal consolidation, structural reforms, and strengthening financial stability. Additionally, staff visits and institutional engagements in countries like Syria and Uzbekistan focused on recovery, banking reforms, and capacity-building initiatives, reflecting ongoing IMF policy support and oversight.