Abu dhabi: Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated that Arab economies are expected to grow by 3.7 percent in the coming period. This growth is attributed to increased oil production and the recovery of non-oil sectors, indicating improved economic performance in the region despite facing global challenges.
According to Emirates News Agency, Georgieva, during her opening speech at the Annual Arab Fiscal Forum, highlighted that the global economy is projected to grow by approximately 3.2 percent this year. This exceeds previous expectations and is supported by stronger global demand and reduced financial pressures in several major economies.
Georgieva further noted that global inflation is on a downward trend, expected to reach about 3.8 percent in 2026 and decrease to 3.4 percent by 2027. This decline is facilitated by lower energy prices and enhanced efficiency in global supply chains.
In terms of Arab economies, Georgieva pointed out positive indicators, including the return of two Arab countries to international debt markets after over three years. This marks stronger public finances and renewed investor confidence.
The IMF Managing Director also mentioned that remittance flows to Arab countries increased by over 5 percent, driven by the recovery of tourism and improving global labor markets. This growth contributes to the financial and social stability in several Arab states.
Georgieva also highlighted the UAE’s ongoing progress in strengthening its economic model based on diversification. Non-oil activities now account for about 80 percent of the UAE’s GDP, showcasing the success of the country’s long-term economic strategies.
The Arab Fiscal Forum is addressing the future of fiscal policies in the region, focusing on the role of government technology and artificial intelligence in enhancing public spending efficiency, financing sustainable development, and fostering partnerships between the public and private sectors.