IMF praises Gulf economies’ resilience amid global uncertainty
The IMF has commended Gulf Cooperation Council economies for maintaining growth and stability despite mounting global geopolitical challenges.
Key Takeaways
AIThe International Monetary Fund has praised the resilience of Gulf Cooperation Council economies and the economic and fiscal measures they have adopted in the current climate, affirming their ability to sustain growth even as global uncertainty and volatility increase.
The remarks came during a joint meeting of GCC finance and economy ministers and central bank governors with the IMF Managing Director, held today in Manama and chaired by Salman bin Khalifa Al Khalifa, Bahrain’s Minister of Finance and National Economy and current session chair.
GCC Secretary-General Jassim Mohammed Al-Budaiwi noted that disruptions affecting energy production, shipping, logistics, and trade have once again highlighted how quickly geopolitical developments can impact the region’s economies and global markets.
Al-Budaiwi added that GCC economies have demonstrated strong financial and economic resilience, emphasizing that this resilience is not accidental but the result of prudent economic and fiscal policies, robust financial resources, solid banking systems, and strategic investments in infrastructure and economic diversification.
Stability and deeper economic integration prioritized
Al-Budaiwi stressed that the immediate priority for GCC states is to maintain macroeconomic and financial stability while ensuring policies remain flexible and responsive to developments, underlining the need to embed resilience as a core component of member states’ economic structures.
He highlighted the importance of accelerating efforts to strengthen economic integration among GCC countries, facilitating the movement of goods, services, capital, and citizens, and developing more resilient and diversified supply chains and trade and logistics corridors.
He also called for advancing structural reforms that enhance the role of the private sector, boost competitiveness, encourage innovation and digital transformation, and accelerate the shift toward more diversified, knowledge-based economies.