International Monetary Fund Director Kristalina Georgieva said that phasing out explicit energy subsidies could save the Middle East $336 billion, equivalent to the economies of Iraq and Libya combined.
She added in her speech yesterday, Sunday, through the Fund’s website at the World Government Summit in Dubai, that “in addition to the gains in terms of budget surplus expected to result from this gradual cancellation, it reduces pollution and helps improve social spending, which constitutes a triple return.” “.
Georgieva expected GDP growth in North Africa and the Middle East to reach 2.9% this year, “which is higher than last year, but still lower than our expectations for October 2023, largely due to short-term cuts in oil production and conflict.” between Gaza and Israel, and the tight monetary policies that are still needed.”
On the other hand, the Director of the International Monetary Fund, Kristalina Georgieva, confirmed in her speech at the summit held in Dubai, that “Egypt, Jordan, and Morocco succeeded in implementing comprehensive plans for subsidy reform that were characterized by strong public communications, appropriate stages for price increases, and targeted monetary support for the most vulnerable groups.”
She said: “While uncertainty remains high, we can be a bit more confident about the economic outlook, because the global economy has been surprisingly resilient. Growth has exceeded expectations in 2023, and global inflation is expected to decline in 2024, but We cannot declare victory prematurely.”
He said: “The dire prospects for the Palestinian economy are getting worse as the conflict continues, and only permanent peace and a political solution will radically change it.” The IMF will continue to provide policy advice and technical assistance to the Palestinian Authority and the Palestine Monetary Authority.”
She continued: “Looking at neighboring economies, the conflict is impacting tourism, which is a lifeline for many, and we are closely monitoring the financial impacts, which can be seen in areas such as increased spending on social safety nets and defense.”
She continued: “Across the region and beyond, the impact is visible through higher shipping costs and lower transit volumes in the Red Sea, which have fallen by approximately 50% this year, according to our PortWatch data.”
The Director of the International Monetary Fund warned in her speech that “this extraordinarily uncertain moment exacerbates the challenges facing economies that are still recovering from previous shocks, and further expansion of the conflict would exacerbate the economic damage, but the Arab world is able To plant the seeds of a better and more stable future in these difficult circumstances. “It can meet future reconstruction needs, enhance resilience, and create the opportunities that a growing population demands.”