Dr. Mahmoud Mohieldin, the United Nations Special Envoy on Financing the 2030 Sustainable Development and Executive Director of the International Monetary Fund said that there are signs of global economic recovery, albeit at growth rates below the desired averages. The global average for expected growth is around 3 percent to 3.1 percent, he added.
Speaking to the Emirates News Agency (WAM) on the sidelines of the now-running World Governments Summit (WGS) 2024, the international official pointed out that Arab economies were expected to grow by 3.2 percent to 3.5 percent, but due to geopolitical tensions in the world, expected rates have fallen by half a percentage point, bringing the expected growth rate to between 2.8 percent and 2.9 percent.
"Arab countries need growth figures twice this number to be able to meet the needs of young people for jobs and employment opportunities, in addition to investing in education, healthcare, developing technological policies, and strengthening economies against various shocks, especially those related to climate change and its negative effects."
On global inflation, he said it has eased, falling from a range of 7% to 9% in the past three years to a projected 3.5% to 4% this year.
Mahmoud Mohieldin pointed that US interest rates are likely to remain stable or even fall in the coming period, but won't return to pre-pandemic levels unless inflation spikes again.
Dr. Mohieldin emphasised the significance of WGS as one of the foremost annual global events. He highlighted the summit's rapid growth and remarkable development over the 11 years since its inception. Dr. Mohieldin commended the exceptional organisation of the summit, the diverse range of topics and sectors covered, and the presentation of practical solutions, as well as the exchange of experiences between countries and civil society institutions.