IMF: Reforms enhanced GCC countries' ability to handle regional repercussions - Sarmad
IMF praises Gulf reforms and lowers growth forecasts
Translated by Qiyas from سرمد — Original source
The International Monetary Fund (IMF) confirmed that the reforms and precautionary measures adopted by Gulf Cooperation Council (GCC) countries have strengthened their capacity to cope with the repercussions recently witnessed in the region, following the US-Iran war.
This statement came during a joint press briefing on the proceedings of the International Monetary and Financial Committee (IMFC), held by IMF Managing Director Kristalina Georgieva and the Committee’s Chair, Saudi Finance Minister Mohammed Al-Jadaan, within the framework of the annual meetings of the IMF and the World Bank Group hosted in Bangkok.
Georgieva praised the GCC countries, noting that their reforms enabled them to mitigate the impact of the shock and benefit from the revenues they generated.
On the other hand, Georgieva stated that the Fund has lowered its growth forecast for the Middle East and North Africa (MENA) region by 2 percentage points, while noting that Iraq has requested a program and that the Fund is ready to support it with financing and policy assistance.
She added that discussions with Lebanon have made significant progress toward reaching a program, with some work remaining to be completed, and that Egypt’s program is moving forward and is expected to be completed by the end of the year, while describing the Fund’s program with Jordan as successful.
For his part, Al-Jadaan said that MENA countries are divided into two groups: one that entered the shocks after structural reforms and building precautionary buffers, which includes most GCC countries, and another that entered the phase exhausted and lacking the necessary capacities and buffers.
He noted that investments by countries such as Saudi Arabia mitigated the severity of the energy crisis shock on the global economy.
He pointed out that wars and conflicts impose a heavy human cost and significant economic repercussions, adding that disruptions to waterways and trade routes threaten energy and food security.
He highlighted that geopolitical tensions and supply chain disruptions increase uncertainty and price pressures, while rising public debt and bond yields exacerbate financial vulnerabilities.
He called for medium-term plans to rebuild precautionary buffers, while protecting the most vulnerable groups, and for investments that boost growth, emphasizing the importance of central bank independence, structural reforms, and private-sector-led investment.
Al-Jadaan stressed the need for international cooperation to address imbalances and trade tensions, and to accelerate and coordinate debt restructuring, including through the G20 Common Framework.
He said that committee members emphasized the importance of ensuring safe and flexible energy flows, upholding freedom of navigation, supporting countries facing debt-related vulnerabilities, and enhancing the Fund’s capacity to support low-income countries.
Bangkok is hosting the annual meetings of the IMF and the World Bank Group from October 12 to 18, with the participation of thousands of financial officials and economists, to discuss global challenges and ways to enhance monetary and investment cooperation.
