Containing inflation, safeguarding the financial markets’ stability and rebuilding fiscal buffers to better withstand shocks are the top policy priorities for the International Monetary Fund this year, it managing director has said.
Successive crises since 2020 have pushed global output down by $3.6 trillion as of this year, however, shocks are becoming a “new normal” in a weakened world suffering from economic fragmentation, Kristalina Georgieva said in a media briefing on the sidelines of the World Bank and IMF annual meetings in Marrakesh on Thursday.
“Price stability is a prerequisite for growth as it also protects people, especially the poorest members of society,” Ms Georgieva said.
“Second, we need to save the financial stability. As we have seen in recent weeks from the moves in bond yields in the US and Europe, markets have been adjusting in an orderly way to the realisation that interest rates would stay higher for longer, but a sudden further tightening of financial conditions could hit markets, could hit banks and non-banks [entities], which is why strong financial supervision is essential.”
After a period of increased public spending, as the world recovered from the aftershocks of the coronavirus pandemic, nations need to rebuild and replenish their fiscal buffers, Ms Georgieva said.
Shoring up fiscal buffers will help countries to be able to “respond to future shocks, make vital investments and bring down debt”, she said.
“In most cases, this means tighter and better targeted fiscal policy. Reprioritising spending and mobilising domestic revenues, especially in emerging markets and low‑income countries, is now even more important.”
The world economy recovered well from the pandemic-driven slowdown in 2020 that pushed it into one of its worst tailspins since the 1930s.
However, the pace of recovery has slowed significantly, marred by a sharp rise in inflation that hit the highest level in decades in Europe and the US last year.
To bring consumer prices back to their target range, central banks have been raising interest rates sharply, which has also subdued economic momentum.
Earlier this week, the IMF maintained its forecast for global growth for this year but revised it marginally lower for next. It said the world economy is on the path of recovery, however growth remains slow and uneven.
The fund kept its global economic growth projection for this year at 3 per, slower than the 3.5 per cent expansion recorded in 2022. The latest projection in the World Economic Outlook report is below the historical growth average.
For 2024, the IMF expects the world gross domestic product to expand by 2.9 per cent, a 0.1 percentage point downgrade for next year from the fund’s forecast in July.
Global inflation is forecast to decline from 8.7 per cent in 2022 to 6.9 per cent in 2023 and 5.8 per cent in 2024. But the forecasts for 2023 and 2024 are revised up by 0.1 percentage point and 0.6 percentage point, respectively.
“Core inflation, which excludes food and energy prices, is also projected to decline, albeit more gradually, to 4.5 per cent next year. Most countries aren’t likely to return inflation to target until 2025,” the IMF report said.
Conflicts, including Russia's continuing the military assault in Ukraine that triggered a global energy crisis and stoked commodities and food inflation globally, as well as the latest Israel-Gaza war are deterrent to growth, she said.
The loss of civilian lives is “tragic” and the multilateral lender is closely watching the situation to gauge its impact on the broader regional and the global economy.
“It is too early to say, [but] we have seen some up and down of oil prices. We have seen some reaction in [equity] markets.”
Amid slowing global growth, “very clearly this is a new cloud on not the sunniest horizon for the world economy … darkening this horizon, [which] of course was not needed,” she added.
This week the IMF warned that the focus should return to the “dimming medium-term outlook” as global growth prospects are weak, especially for emerging market and developing economies.
Ms Georgieva said boosting medium-term growth is the fourth priority for the fund.
“Today, we simply don't have the growth that we need to heal from the impact of shocks,” she said. “Our research shows that smartly packaged reforms can have a big short-term impact, lifting output as much as 8 per cent over four years, in quite a number of countries.”
Company profile
Name: GiftBag.ae
Based: Dubai
Founded: 2011
Number of employees: 4
Sector: E-commerce
Funding: Self-funded to date
UAE currency: the story behind the money in your pockets
Freezer tips
- Always make sure food is completely cool before freezing.
- If you’re cooking in large batches, divide into either family-sized or individual portions to freeze.
- Ensure the food is well wrapped in foil or cling film. Even better, store in fully sealable, labelled containers or zip-lock freezer bags.
- The easiest and safest way to defrost items such as the stews and sauces mentioned is to do so in the fridge for several hours or overnight.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The specs
Engine: 4.0-litre, twin-turbocharged V8
Transmission: nine-speed automatic
Power: 630bhp
Torque: 900Nm
Price: Dh810,000
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
'Ashkal'
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Youssef%20Chebbi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Fatma%20Oussaifi%20and%20Mohamed%20Houcine%20Grayaa%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
THE BIO
Occupation: Specialised chief medical laboratory technologist
Age: 78
Favourite destination: Always Al Ain “Dar Al Zain”
Hobbies: his work - “ the thing which I am most passionate for and which occupied all my time in the morning and evening from 1963 to 2019”
Other hobbies: football
Favorite football club: Al Ain Sports Club
The finalists
Player of the Century, 2001-2020: Cristiano Ronaldo (Juventus), Lionel Messi (Barcelona), Mohamed Salah (Liverpool), Ronaldinho
Coach of the Century, 2001-2020: Pep Guardiola (Manchester City), Jose Mourinho (Tottenham Hotspur), Zinedine Zidane (Real Madrid), Sir Alex Ferguson
Club of the Century, 2001-2020: Al Ahly (Egypt), Bayern Munich (Germany), Barcelona (Spain), Real Madrid (Spain)
Player of the Year: Cristiano Ronaldo, Lionel Messi, Robert Lewandowski (Bayern Munich)
Club of the Year: Bayern Munich, Liverpool, Real Madrid
Coach of the Year: Gian Piero Gasperini (Atalanta), Hans-Dieter Flick (Bayern Munich), Jurgen Klopp (Liverpool)
Agent of the Century, 2001-2020: Giovanni Branchini, Jorge Mendes, Mino Raiola
Analysis
Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more
The specs
Engine: 3.0-litre twin-turbo flat-six
Power: 480hp at 6,500rpm
Torque: 570Nm from 2,300-5,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 10.4L/100km
Price: from Dh547,600
On sale: now
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The specs: 2017 Ford F-150 Raptor
Price, base / as tested Dh220,000 / Dh320,000
Engine 3.5L V6
Transmission 10-speed automatic
Power 421hp @ 6,000rpm
Torque 678Nm @ 3,750rpm
Fuel economy, combined 14.1L / 100km
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
