GCC Secretary-General: IMF Praises Resilience of Gulf Economies and Their Ability to Continue Growth

Manama, January 1 (KUNA) -- The Secretary-General of the Gulf Cooperation Council (GCC), Jassem Al-Budawi, said here on Thursday that the International Monetary Fund (IMF) commended the resilience of the GCC member states’ economies and the economic and financial measures they have adopted amid current circumstances, as well as their ability to maintain a growth trajectory even amid rising global uncertainty and ambiguity.

This statement came during a joint meeting between the finance and economy ministers and central bank governors of the GCC member states and IMF Managing Director Kristalina Georgieva, chaired by Bahrain’s Minister of Finance and National Economy, Sheikh Salman bin Khalifa Al Khalifa.

Speaking at the meeting, Al-Budawi said, “We meet today in a period during which our region faces a highly complex economic and geopolitical environment. Recent disruptions to energy production, shipping, logistics, and trade have once again demonstrated how swiftly geopolitical developments impact our economies and global markets. Despite these challenges, the GCC economies have proven to possess strong overall financial and economic resilience.”

He added, “This resilience did not come by chance; it is the result of years of sound economic and fiscal policies, robust fiscal buffers, solid banking systems, strategic investments in infrastructure and interconnectivity, and economic diversification.”

The Secretary-General emphasized that “our urgent priority is to maintain macroeconomic and financial stability while ensuring that our policies remain flexible, responsive to developments, and capable of adapting to rapid changes.” He noted that “our response should not be limited to managing the direct repercussions of geopolitical shocks; rather, we must embed resilience as an integral part of our countries’ economic structures.”

In this context, he stressed the importance of accelerating the GCC’s efforts to enhance economic integration, facilitate the movement of goods, services, capital, and citizens, strengthen regional supply chains, and develop more flexible and diversified trade and logistics corridors. He also highlighted the need to advance structural reforms that boost the role of the private sector, enhance competitiveness, encourage technological innovation and digital transformation, and accelerate the transition toward more diversified, knowledge-based economies.

Al-Budawi pointed out that regional integration is a fundamental pillar for achieving this goal, explaining that “the deeper the integration of our markets, infrastructure, financial systems, and supply chains, the greater our collective capacity to absorb external shocks and turn challenges into opportunities for sustainable growth.”

He stressed that “the current environment reminds us that economic resilience is not merely the ability to withstand shocks, but also the capacity to anticipate them, adapt to them, and emerge from them stronger.”

He affirmed that “this requires us to continue strengthening our economic and policy frameworks, deepen coordination among our member states, complete the remaining steps toward broader GCC economic integration, and reinforce our partnerships with international institutions, foremost among them the IMF.”

He added that GCC member states reaffirm their firm commitment to this path, noting that “through policy coordination, deeper integration, and continued economic transformation, we will strengthen the foundations of our economies and achieve sustainable prosperity for the peoples of the GCC.” (End) K.N.A. / M.A.A.