USA: International Monetary Fund's Managing Director, Kristalina Georgieva, predicted that this year could finally mark a significant "turning point" for the global economy while assessing the outlook for 2023-2024.
After a long period in which the opposite was true -- growth was down and inflation was up -- "finally we are getting back to growth and inflation is going down," the IMF chief said in Dubai on Sunday.
"For particularly impressive growth projections, we expect the world to grow by 2.9% in 2023, down from last year's growth," Georgieva said. 3.4% for the previous year.
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Then projections put the figure at 3.1% in 2024. This is lower than the global average of 3.8%. Therefore, even in 24 we will not return to the kind of development that the world needs.
“Three factors have influenced this less pessimistic outlook. One is the remarkable resilience of the US and European labor markets, which has led to strong consumer demand.
Second, the reopening of China on December 8 last year significantly improved the recovery forecast. Third, Europe must adjust as it reduces its dependence on Russian gas and oil.
Now that headline inflation has started declining, he continued, "However core inflation has not yet taken off.
The seventh annual Arab Fiscal Forum, held at the World Government Summit, featured speeches by the IMF Director as well as other prominent figures in international banking and finance, including those from Islamic finance.
A long list of world leaders and celebrities are expected to attend the World Government Summit in Dubai, which is set to begin on Monday, February 13.
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Several leaders, experts and decision-makers from international organizations were present at the start of the Forum on Sunday. In her keynote address, Georgieva discussed the important role that resilient public finance can play in protecting people and economies. Additionally, they commended the Gulf countries for providing assistance to low-income countries in the region in times of need.