The International Monetary Fund’s (IMF) managing director, Kristalina Georgieva, expressed optimism about the global economic outlook during a speech at the World Government Summit in Dubai. Despite uncertainties related to war and geopolitics, Georgieva expressed confidence that the world economy would continue to show remarkable resilience.
In addition to highlighting the potential cost savings from phasing out regressive energy subsidies in the Middle East, Georgieva emphasized that doing so would also help reduce pollution and improve social spending. However, she also noted that recent short-term oil production cuts had resulted in a downward revision of the IMF’s GDP growth forecast for the Middle East and North Africa region to 2.9% this year.
Despite these challenges, Georgieva expressed hope for a better future for the global economy. She warned of the potential consequences of ongoing conflicts such as the one in Gaza and their impact on economies still recovering from previous shocks. Nevertheless, she remained confident that with appropriate policies and actions, economies could continue to grow and thrive despite these challenges.