The International Monetary Fund (IMF) managing director, Kristalina Georgieva, expressed optimism about the global economic outlook despite uncertainties related to war and geopolitics. She made these comments during a speech at the World Government Summit in Dubai. Georgieva also announced that the IMF would release a paper the following day showing that phasing out explicit energy subsidies in the Middle East could result in significant savings of $336 billion, equivalent to the entire economies of Iraq and Libya combined.
Georgieva emphasized that eliminating regressive energy subsidies would not only lead to substantial cost savings but would also discourage pollution and help improve social spending. However, the IMF recently revised its GDP growth forecast for the Middle East and North Africa region downward to 2.9% this year, partly due to short-term oil production cuts. Despite these challenges, Georgieva expressed confidence in the global economy’s ability to recover from shocks and show remarkable resilience.
The conflict in Gaza has been ongoing for years, exacerbating economic challenges faced by economies still recovering from previous shocks. Georgieva warned of its potential consequences, urging policymakers to take action towards peace and stability in the region.
Overall, Georgieva’s message was one of hope and optimism for the global economy despite ongoing uncertainties related to war and geopolitics.