German government sources say World economy poised to avoid recession, but growth remains sluggish.

German government sources have indicated that while the danger of a global recession has been avoided, growth will still be limited, according to International Monetary Fund forecasts to be released on Tuesday. The sources noted that the global economy is expanding but not in a very dynamic way, with some regions experiencing no growth at all. They stressed the need for structural reforms to address this issue.

“In the medium term, global growth prospects are also unsatisfactorily low,” one source stated. The IMF spring meeting in Washington DC is being held amidst challenging circumstances, including the recent Iranian attack on Israel. During the meeting, the G20 finance ministers and central bank governors will hold discussions on climate financing and strengthening international development banks.

German Finance Minister Christian Lindner and Bundesbank President Joachim Nagel have called for the IMF to focus on its core tasks in a joint op-ed published in Germany’s Handelsblatt. They emphasized that financing a development policy agenda should be left to institutions like the World Bank, rather than the IMF. The sources indicated that there are no plans for a communique to be released following the meetings.