The IMF has advised the US to take action to reduce its high budget deficit.

In a recent statement, the International Monetary Fund (IMF) advised the United States (US) to raise revenue in order to reduce its high budget deficit. While the budget deficit has been instrumental in driving global economic growth through increased domestic demand in the US, the IMF warned that it also leads to higher interest rates and a stronger dollar, which can complicate matters for the rest of the world. The IMF's Fiscal Monitor predicts that the US deficit will rise over the next few years, reaching 6.67% of GDP in 2024 and 7.06% in 2025. This represents a significant increase from the 3.5% recorded in 2015. In a recent statement, the IMF's First Deputy Managing Director, Gita Gopinath, outlined the upcoming annual review of US economic policy, which will recommend increasing tax revenues and reforming costly Social Security and Medicare programmes for senior citizens as measures to reduce the deficit.

https://internasional.kontan.co.id/news/imf-ingatkan-as-untuk-turunkan-defisit-anggaran-yang-tinggi

The latest figures show that funding for Fintechs has reached its lowest level since 2017.

The fintech industry has experienced a significant decline in funding, with only $7.3 billion invested in the first quarter of 2024. This represents a 16% decrease compared to the previous quarter. Despite this decline, the number of fintech funding deals has increased for the first time in a year, with a 15% rise in transactions. However, the value of these deals is shrinking, with an average funding amount of $11.1 million, compared to $13.6 million in 2023. Large funding deals over $100 million are also slow, with only 12 mega-rounds accounting for 26% of the total funding value. One example of such a deal is Monzo, a UK bank competitor, which received $431 million in funding from Alphabet, representing 6% of the total funding. While the total value of fintech funding may be decreasing, it is evident that the industry is still attracting investors, albeit with smaller investment amounts.

https://internasional.kontan.co.id/news/pendanaan-untuk-fintech-merosot-ke-level-terendah-sejak-2017

Multilateral development banks are seeking additional loans of up to US$400 billion over the next decade.

Leaders from 10 multilateral development banks, including the Inter-American Development Bank (IDB), have pledged to take action in five key areas. This includes providing an additional lending space of between $300 billion and $400 billion over the next decade. The move comes as developing countries face challenges in transitioning to low-carbon economies and are affected by higher global interest rates. The effort aims to increase funding under favourable conditions for these countries. The IDB President, Ilan Goldfajn, emphasised the potential for greater impact and scale by working together. The group of institutions, which includes the World Bank Group, New Development Bank, Asian Infrastructure Investment Bank, European Investment Bank, and African Development Bank, plans to better coordinate their actions as a system. The increase in financing capacity will be supported by the use of innovative financial instruments and by expanding the group's lending capacity.

https://internasional.kontan.co.id/news/bank-pembangunan-multilateral-incar-pinjaman-tambahan-hingga-us-400-m-dalam-10-tahun