The International Monetary Fund’s chief, Kristalina Georgieva, on Monday expressed confidence in the world economic outlook, describing the global economy as being “surprisingly resilient”.
She told the Eighth Annual Arab Fiscal Forum in Dubai, UAE on Monday, that growth exceeded expectations in 2023, and global headline inflation is expected to fall in 2024. “But we cannot declare victory prematurely.”
“Despite Medium-term growth prospects remain lower than the historical average of 3.8 per cent, they could be boosted by factors like developments in artificial intelligence. But with roughly 40 per cent of jobs exposed to AI—both globally and in the Arab world—its effects are uncertain. Countries that lack the infrastructure and skilled workforces to harness this technology could fall further behind,” she said.
She added that the IMF expected GDP growth to reach 2.9 per cent in the Middle East and North Africa in 2024, which is higher than that of 2023.
Georgieva stressed that the war in Gaza has impacted Gaza neighbours as well as the whole world, as freight costs and reduced Red Sea transit volumes impacted supply chains.
The IMF official urged the countries to expand tax capacity with stronger institutions, better-designed frameworks, and more robust revenue collection; eliminate regressive energy subsidies, and improve the performance of state-owned enterprises for a better and more stable future in these challenging conditions.
