IMF chief confident in economic outlook despite uncertainties

International Monetary Fund’s (IMF) managing director Kristalina Georgieva expressed confidence on Sunday in the economic outlook despite uncertainties related to war and geopolitics, citing that global economy has remained resilient.

The IMF is set to release a paper on Monday showing that eliminating direct energy subsidies could result in savings of $336 billion in the Middle East, which is equal to the combined economies of Iraq and Libya, Georgieva added.

She continued during her speech at the World Government Summit in Dubai, that eliminating regressive energy subsidies not only leads to savings but also discourages pollution and helps improve social spending.

The IMF revised its GDP growth forecast for the Middle East and North Africa region downwards to 2.9 per cent this year in its latest regional economic update, due in part to short-term oil production cuts.

She also warned of the widening consequences of the conflict in Gaza, emphasising the challenges faced by economies still recovering from previous shocks and the potential aggravation of economic harm with further conflict escalation.