The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, spoke confidently about the global economic outlook during a speech at the World Government Summit in Dubai. Despite uncertainties related to war and geopolitics, Georgieva expressed optimism that the world economy will continue to show remarkable resilience.
In her speech, Georgieva also announced that the IMF would release a paper showing that phasing out explicit energy subsidies in the Middle East could result in significant savings of $336 billion. This amount is equivalent to the entire economies of Iraq and Libya combined. Additionally, Georgieva emphasized that eliminating regressive energy subsidies would also discourage pollution and help improve social spending.
However, despite this positive outlook, Georgieva acknowledged that there are still challenges facing the global economy. 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 remains optimistic about the future of the world economy and believes that it will continue to show remarkable resilience.