The Managing Director of the International Monetary Fund, Kristalina Georgieva, said the strength of the economic fundamentals in the Gulf countries contributed to supporting the stability of the region’s economies during the ongoing war between the United States and Iran.
During a joint press conference with the Executive Director of the International Energy Agency, Fatih Birol, Georgieva responded to questions from Asharq-Bloomberg, saying that the Gulf states had worked in the past decade to build strong foundations, develop sound policies, and establish precautionary margins, and that this had benefited the entire region, because its strength had been transferred to others.
She added that the assessment of the crisis’s impact varies between countries based on whether a country is an energy exporter or importer, and on the strength of its policies and economic fundamentals, noting that countries with strong institutions are more able to withstand times of crisis, even under market restrictions, reports Al-Rai daily.
The IMF predicted that global economic growth this year would reach 3.1%, amid the repercussions of geopolitical tensions and energy market turmoil and stressed that escalating geopolitical tensions could lead to the biggest energy market shock in modern history, which would put pressure on global economic growth and exacerbate inflationary pressures.
Georgieva noted that the institution does not expect a significant increase in demand for IMF resources, because emerging economies alone have, over the past decade, built strong institutions, independent central banks, fiscal boards, and robust reserves that mitigate the impact on them and the world.
For his part, Birol stressed that the countries of the Middle East are divided into two main groups: oil exporters and non-exporters, noting that there is a great disparity even within the exporting countries themselves, in terms of the ability to deal with shocks.
Birol pointed out that Saudi Arabia enjoys a stronger financial position, praising what it has done with regard to the East-West pipeline, in addition to having the ability to store oil, which gives it greater flexibility compared to other countries that lack these capabilities.
On the other hand, the International Energy Agency predicted that global oil supplies would decrease by 1.5 million barrels per day in 2026, compared to previous expectations of an increase of 1.1 million barrels per day.
In its monthly report, the agency predicted a decrease in global oil demand of 80,000 barrels per day in 2026, confirming that this comes in contrast to previous expectations of an increase of 640,000 barrels per day.
The agency noted that resuming flows through the Strait of Hormuz is most important to alleviate pressure on energy supplies and prices.
