The headquarters of the IMF in Washington DC. Reuters
The headquarters of the IMF in Washington DC. Reuters
The headquarters of the IMF in Washington DC. Reuters
The headquarters of the IMF in Washington DC. Reuters

Opinion

Editorial

The IMF has rarely been so important

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Insight and opinion from The National’s editorial leadership

October 13, 2022

The global economy is facing severe headwinds in 2022. Mounting pressure has already toppled some governments, whether through elections or popular revolutions. As the war in Ukraine continues, inflation is rising, and in particular badly affected countries popular discontent is rising with it.

The atmosphere in the ongoing annual meetings at the International Monetary Fund (IMF) and the World Bank is telling. The Fund has maintained its growth forecast for the remainder of this year, but cut its forecast for 2023, warning of an impending cost of living crisis.

The German and Italian economies, two of Europe’s largest, are likely to shrink in 2023. This is hardly surprising; both are heavily reliant on Russian gas, supplies of which have been slashed due to the war in Ukraine. Both also have large manufacturing sectors, which are suffering from supply chain troubles, rising fuel costs and fears over consumer spending. Other European powers are in trouble, too. At the end of September the IMF warned the UK that a controversial new budget would "likely increase inequality".

Nilanthi Gunasekera, 49, holds her family’s last remaining handful of dried fish. She is one of the millions of Sri Lankans battling a sharp decline in living standards. All photos: Reuters
Nilanthi Gunasekera, 49, holds her family’s last remaining handful of dried fish. She is one of the millions of Sri Lankans battling a sharp decline in living standards. All photos: Reuters
Dilhani Wathsala, 14, eating lunch cooked by Gunasekera, her mother. 'Before the economic crisis, we ate well and we served meat or fish to our kids at least three or four times a week. Now fish is out of the reach of our family and so is meat,' said Gunasekera.
Dilhani Wathsala, 14, eating lunch cooked by Gunasekera, her mother. 'Before the economic crisis, we ate well and we served meat or fish to our kids at least three or four times a week. Now fish is out of the reach of our family and so is meat,' said Gunasekera.
'We had a good business at our kiosk,' said food kiosk owner Chandra Thushari Peiris, 42. 'Since we used to eat the leftovers from our kiosk we didn't have any problem with food.'
'We had a good business at our kiosk,' said food kiosk owner Chandra Thushari Peiris, 42. 'Since we used to eat the leftovers from our kiosk we didn't have any problem with food.'
'But during the pandemic, and more so the present economic crisis, we didn't get any customers. Although we want to restart we don't have any capital,' Ms Peiris said.
'But during the pandemic, and more so the present economic crisis, we didn't get any customers. Although we want to restart we don't have any capital,' Ms Peiris said.
'Our water and electricity supplies were disconnected during the Covid-19 crisis but still we had food,' said road sweeper W.M. Irangani, 58, 'but this is far, far worse,' she said.
'Our water and electricity supplies were disconnected during the Covid-19 crisis but still we had food,' said road sweeper W.M. Irangani, 58, 'but this is far, far worse,' she said.
Ms Irangani added: 'I am scared to borrow as I have no way of repaying. Already I am in huge debt. I only pray that this economic crisis improves for all and we have enough food to eat.'
Ms Irangani added: 'I am scared to borrow as I have no way of repaying. Already I am in huge debt. I only pray that this economic crisis improves for all and we have enough food to eat.'
Oshada Fernando, 11, plays with a kite his uncle made for him. 'With the economic crisis we haven't bought any toys for our son,' said his mother, 42-year-old Anusha Priyadarshini.
Oshada Fernando, 11, plays with a kite his uncle made for him. 'With the economic crisis we haven't bought any toys for our son,' said his mother, 42-year-old Anusha Priyadarshini.
'Just a couple of months back some robbers broke into our house and stole the small gas cylinder and the cooker we had,' said Vidyathipathige Nihal, 62.
'Just a couple of months back some robbers broke into our house and stole the small gas cylinder and the cooker we had,' said Vidyathipathige Nihal, 62.
Mr Nihal, holding two small bags of chickpeas and rice, the only grain his family currently has, is now forced to cook with firewood.
Mr Nihal, holding two small bags of chickpeas and rice, the only grain his family currently has, is now forced to cook with firewood.
'I joined the Sri Lanka Army in 1989, and in 1992 I lost my leg to a land mine,' said retired soldier Saman Priyantha, 51.
'I joined the Sri Lanka Army in 1989, and in 1992 I lost my leg to a land mine,' said retired soldier Saman Priyantha, 51.
Mr Priantha said he is receiving a pension but it is not enough to feed and look after his family of five.
Mr Priantha said he is receiving a pension but it is not enough to feed and look after his family of five.
"I am a heart patient and have to take medicine every day," said Manel Peiris, 68. "Hospitals used to issue medicine for three months. But ... hospitals don't have medicine and so we are asked to buy from pharmacies."
"I am a heart patient and have to take medicine every day," said Manel Peiris, 68. "Hospitals used to issue medicine for three months. But ... hospitals don't have medicine and so we are asked to buy from pharmacies."
She said that sometimes her husband has to borrow or get an advance from his workplace to buy the medicine.
She said that sometimes her husband has to borrow or get an advance from his workplace to buy the medicine.
'For the last two years, I have sewn clothes for a kids' clothing shop,' said K.P.R. Priyadarshani, 54, who lives with her 16-year-old son Ramika Lakdin.
'For the last two years, I have sewn clothes for a kids' clothing shop,' said K.P.R. Priyadarshani, 54, who lives with her 16-year-old son Ramika Lakdin.
Ms Priyadarshani said that with the onset of the economic crisis, people don't have money to buy food, let alone clothes.
Ms Priyadarshani said that with the onset of the economic crisis, people don't have money to buy food, let alone clothes.
Sivaraja Sanjeewan, 31, takes a bath at a public well at Wanathamulla, Colombo.
Sivaraja Sanjeewan, 31, takes a bath at a public well at Wanathamulla, Colombo.
Auto rickshaw driver Mr Sanjeewan said: 'We have a tap water connection but it's very difficult to pay water and electricity bills in addition to the rising costs of food. So now I bathe in a public well more often to save money."
Auto rickshaw driver Mr Sanjeewan said: 'We have a tap water connection but it's very difficult to pay water and electricity bills in addition to the rising costs of food. So now I bathe in a public well more often to save money."
As desperation grows, the government is seeking a multi-billion-dollar bailout in talks with the IMF, but major financial assistance is still months away, so few Sri Lankans are expecting to see light at the end of the tunnel soon.
As desperation grows, the government is seeking a multi-billion-dollar bailout in talks with the IMF, but major financial assistance is still months away, so few Sri Lankans are expecting to see light at the end of the tunnel soon.

The cause for alarm goes far beyond Europe, particularly in emerging economies. Since the beginning of the Ukraine war, the IMF has drawn up programmes for 10 countries, estimated to be worth a total of $77 billion. They include Sri Lanka and Lebanon, both of which have seen widespread social unrest this year in large part due to economic woes.

The largest economies are suffering, too. The chief executive of JP Morgan warned earlier this week that the US was likely to go into recession by the middle of next year.

For the Middle East, the picture is mixed. The region contains some of the most ascendant and weakest economies globally. The latter are more vulnerable to the many new shocks that have come in 2022, as well as the lingering effects of the pandemic. Egypt, another country that is seeking support from the IMF, had already been contending with reduced activity in its crucial tourism industry due to the pandemic. Now, its reliance on imported grain, the vast majority of which comes from Ukraine and Russia, is another cause for concern. On the other side, Saudi Arabia is forecast to grow by 7.6 per cent, a massive expansion from last year's 3.2 per cent. As the world's largest exporter of oil, it has benefitted from high energy prices in 2022. And on Monday, the UAE agreed on its federal budget between 2023 to 2026. It estimates 11 per cent growth in government revenue in the next fiscal year.

The complexity the region is grappling with is precisely why organisations such as the IMF and the World Bank are so valuable. Throughout these incredibly challenging times and varied headwinds it has been a voice for fiscal responsibility and a vehicle to help countries most in need. Central governments hold the keys to managing the situation as sensibly as possible. But, as many have been demonstrating for some time, they need as much help, and sometimes constructive criticism, as they can get.

Top 10 most polluted cities
  1. Bhiwadi, India
  2. Ghaziabad, India
  3. Hotan, China
  4. Delhi, India
  5. Jaunpur, India
  6. Faisalabad, Pakistan
  7. Noida, India
  8. Bahawalpur, Pakistan
  9. Peshawar, Pakistan
  10. Bagpat, India
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The specs

Engine: Turbocharged four-cylinder 2.7-litre

Power: 325hp

Torque: 500Nm

Transmission: 10-speed automatic

Price: From Dh189,700

On sale: now

KILLING OF QASSEM SULEIMANI
Killing of Qassem Suleimani
STAY%2C%20DAUGHTER
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3EYasmin%20Azad%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3ESwift%20Press%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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Sanju

Produced: Vidhu Vinod Chopra, Rajkumar Hirani

Director: Rajkumar Hirani

Cast: Ranbir Kapoor, Vicky Kaushal, Paresh Rawal, Anushka Sharma, Manish’s Koirala, Dia Mirza, Sonam Kapoor, Jim Sarbh, Boman Irani

Rating: 3.5 stars

UAE currency: the story behind the money in your pockets
Why are asylum seekers being housed in hotels?

The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.

A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.

Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.

The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.

When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.

Roll%20of%20Honour%2C%20men%E2%80%99s%20domestic%20rugby%20season
%3Cp%3E%3Cstrong%3EWest%20Asia%20Premiership%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Dubai%20Tigers%0D%3Cbr%3ERunners%20up%3A%20Bahrain%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EUAE%20Premiership%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Jebel%20Ali%20Dragons%0D%3Cbr%3ERunners%20up%3A%20Dubai%20Hurricanes%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EUAE%20Division%201%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Dubai%20Sharks%0D%3Cbr%3ERunners%20up%3A%20Abu%20Dhabi%20Harlequins%20II%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EUAE%20Division%202%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Dubai%20Tigers%20III%0D%3Cbr%3ERunners%20up%3A%20Dubai%20Sharks%20II%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDubai%20Sevens%3C%2Fstrong%3E%0D%3Cbr%3EChampions%3A%20Dubai%20Tigers%0D%3Cbr%3ERunners%20up%3A%20Dubai%20Hurricanes%3C%2Fp%3E%0A
Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.

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Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

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Specs

Price, base: Dhs850,000
Engine: 3.9-litre twin-turbo V8
Transmission: Seven-speed automatic
Power: 591bhp @ 7,500rpm
Torque: 760Nm @ 3,000rpm
Fuel economy, combined: 11.3L / 100km

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Tomorrow 2021
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On Women's Day
UAE currency: the story behind the money in your pockets
AIR
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EBen%20Affleck%3Cbr%3E%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EMatt%20Damon%2C%20Jason%20Bateman%2C%20Ben%20Affleck%2C%20Viola%20Davis%3Cbr%3E%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3C%2Fp%3E%0A
Cinco in numbers

Dh3.7 million

The estimated cost of Victoria Swarovski’s gem-encrusted Michael Cinco wedding gown

46

The number, in kilograms, that Swarovski’s wedding gown weighed.

1,000

The hours it took to create Cinco’s vermillion petal gown, as seen in his atelier [note, is the one he’s playing with in the corner of a room]

50

How many looks Cinco has created in a new collection to celebrate Ballet Philippines’ 50th birthday

3,000

The hours needed to create the butterfly gown worn by Aishwarya Rai to the 2018 Cannes Film Festival.

1.1 million

The number of followers that Michael Cinco’s Instagram account has garnered.

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Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

ENGLAND SQUAD

Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Sam Billings, Jos Buttler, Tom Curran, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood

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%3Cp%3E%3Cstrong%3EPros%3C%2Fstrong%3E%0D%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EEasy%20to%20use%20and%20require%20less%20rigorous%20credit%20checks%20than%20traditional%20credit%20options%0D%3C%2Fli%3E%0A%3Cli%3EOffers%20the%20ability%20to%20spread%20the%20cost%20of%20purchases%20over%20time%2C%20often%20interest-free%0D%3C%2Fli%3E%0A%3Cli%3EConvenient%20and%20can%20be%20integrated%20directly%20into%20the%20checkout%20process%2C%20useful%20for%20online%20shopping%0D%3C%2Fli%3E%0A%3Cli%3EHelps%20facilitate%20cash%20flow%20planning%20when%20used%20wisely%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cstrong%3ECons%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cul%3E%0A%3Cli%3EThe%20ease%20of%20making%20purchases%20can%20lead%20to%20overspending%20and%20accumulation%20of%20debt%0D%3C%2Fli%3E%0A%3Cli%3EMissing%20payments%20can%20result%20in%20hefty%20fees%20and%2C%20in%20some%20cases%2C%20high%20interest%20rates%20after%20an%20initial%20interest-free%20period%0D%3C%2Fli%3E%0A%3Cli%3EFailure%20to%20make%20payments%20can%20impact%20credit%20score%20negatively%0D%3C%2Fli%3E%0A%3Cli%3ERefunds%20can%20be%20complicated%20and%20delayed%0D%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3E%3Cem%3ECourtesy%3A%20Carol%20Glynn%3C%2Fem%3E%3C%2Fp%3E%0A
MADAME%20WEB
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Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

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The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Updated: October 13, 2022, 4:31 PM`
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