Despite successes, Arab region faces major challenges: IMF

Despite successes, Arab region faces major challenges: IMF

DUBAI: Notwithstanding the successes, the Arab region, like so much of the world, faces significant challenges as it confronts multiple crises, said IMF Managing Director Kristalina Georgieva in her remarks at the seventh Arab Fiscal Forum, in Dubai. The Arab Fiscal Forum is hosted by Arab Monetary Fund.

“Today, I would like to focus on one of the most pressing regional issues: How to strengthen the resilience of public finances to protect our people, our economies, and our climate. Now is the time to move the ball forward, not just on sovereign debt,” she remarked. As the global economy slows, growth is also expected to drop in the Middle East and North Africa-from 5.4 percent in 2022 to 3.2 percent this year before ticking up to 3.5 percent in 2024. The OPEC+ production cuts would reduce overall revenue for the oil exporters. For oil importers, the challenges would continue. Public debt is a particular concern, with several economies in the region facing elevated debt-to-GDP ratios-some close to 90 percent,” she said.

The IMF forecast last month that economic growth in MENA would slow to 3.2 percent this year, before ticking up to 3.5 percent in 2024. Inflation was seen surpassing 10 percent