The International Monetary Fund (IMF) expressed confidence in the development of the global economy, despite risks due to wars and geopolitical situations. However, the Head of the IMF, Kristalina Georgieva, cautioned that further implications could result from the ongoing Gaza war, which would compound challenges for economies still recovering from previous shocks.
In recent news, the IMF lowered its growth forecast for the Middle East and North Africa region to 2.9 percent, 0.5 percentage points less than assumed in October. The organization emphasized that the outlook for the region is extremely uncertain, with many risks dominating, including an expansion of conflict in the Gaza Strip to countries neighboring Israel and trade disruptions caused by violence in the Red Sea. These consequences could have serious implications on tourism industry as well as other industries affected by these disruptions.
Georgieva also highlighted that while there has been progress made in some areas of economic development globally, there are still challenges that need to be addressed. For example, she mentioned that debt levels remain high and inequality continues to be a pressing issue in many countries.
Overall, Georgieva reiterated her optimism about the future of global economy but stressed that it is important for governments and financial institutions to continue working together to address these challenges and create a more stable and sustainable economic environment for all.