Source: AFP
International Monetary Fund chief Kristalina Georgieva on Thursday drew attention to the plight in Yemen and Sudan, which are plagued by civil wars and are often overshadowed by the plight of other countries.
“When we have these highly visible wars like the one in Ukraine, like the one in Gaza… they overshadow the pain and suffering that is happening in other places,” Georgieva said during a news conference.
She added: “But rest assured: for us at the Fund, all members benefit from our support and attention no matter how difficult the circumstances.”
At the same time, Georgieva noted the strength of economies in the Middle East, despite the impact of Israel’s war against Hamas in Gaza and attacks by Yemen’s Houthi rebels on maritime traffic in the Red Sea.
“Jordan has shown remarkable resilience, as has Egypt,” he said.
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The IMF revised up its growth forecast for the Middle East by 0.7 percentage points, Georgieva said.
He also praised Argentina, where inflation is “falling a little faster than we originally expected.”
More generally, he applauded Latin American governments for managing their economies effectively.
“Countries have taken to heart the setting of their monetary policy, and many countries in Latin America have faced inflation more quickly than the rest of the world,” he said.
Turning to the global economy, Georgieva again urged fiscal restraint so that governments are ready for the next major crisis.
“We have long argued that while central banks are pursuing a return to inflation targeting, they could use some help from the fiscal side,” he said.
“Now, fiscal restraint becomes even more important in itself because fiscal capacity has been exhausted in most countries, and that’s dangerous.”
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The IMF is encouraging governments to increase their tax revenues to invest in the fight against global warming.
He added: “We recognize that one size does not fit all… and the speed of integration will vary according to country conditions.
“So we will also need the balance between revenue mobilization and improving the efficiency of spending.”
On Tuesday, the Fund updated its annual report on the state of the global economy and said it expects global growth of 3.2 percent this year, up slightly from its previous estimate.
Source: AFP