Major economies show signs of recovery, says UAE minister

The UAE concluded its participation in the 2024 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) held in Washington D.C.

Chairing the 109th joint WBG-IMF Development Committee plenary, titled ‘From Vision to Impact: Implementing the World Bank Group Evolution’, Mohamed Al Hussaini highlighted the need for swift and constructive interventions to economic development challenges.

He noted his optimism of major economies showing signs of recovery, despite the shocks of the past four years. He pointed out that the outlook for developing countries remains troubled and that the Sustainable Development Goals (SDGs) are further off their 2030 trajectory, while fiscal space in many countries is increasingly constrained because of weak growth and rising debt burdens. He explained that these challenges exacerbate the issues of poverty, climate change, conflict and fragility.

He shared the UAE’s achievements in significantly advancing the global climate agenda at COP28, where countries came together to deliver the landmark UAE Consensus, which includes an unprecedented reference to transitioning away from all fossil fuels in energy systems in a just, orderly and equitable manner as well as a historic commitment to triple renewables, double energy efficiency globally, and end deforestation by 2030.

The main ministerial meetings and events took place between 17th and 19th April, with other sideline events and activities taking place during the week between 15th and 20th April.

The UAE delegation participating in the meetings was headed by Mohamed Bin Hadi Al Hussaini, UAE Minister of State for Financial Affairs, and included Ebrahim Al Zaabi, Assistant Governor for Monetary Policy and Financial Stability at the Central Bank of the UAE, Ahmed Al Qamzi, Assistant Governor for Banking and Insurance Supervision at the Central Bank of the UAE, Ali Abdullah Sharafi, Acting Assistant Undersecretary for International Financial Relations at the UAE Ministry of Finance, Hamad Essa Al Zaabi, Director of the Office of Minister of State for Financial Affairs, Thuraiya Hamid Alhashmi, Director of International Financial Relations and Organisations at the UAE Ministry of Finance, and several specialists from the UAE Ministry of Finance and the Central Bank of the UAE.

Al Hussaini emphasised the significance of the topics being discussed during the 2024 Spring Meetings, and their role in promoting dialogue among stakeholders. He highlighted the UAE’s commitment to further global collaboration to accelerate effective and sustainable solutions for agile worldwide development.

Al Hussaini held several bilateral meetings with finance ministers from Pakistan, Ethiopia, Poland, the United Kingdom, and the United States of America, where discussions focused on expanding the horizons of joint cooperation and international collaboration to solve global challenges. On his part, Ebrahim Al Zaabi affirmed that the International Monetary Fund and the World Bank Spring 2024 meetings, along with accompanying discussions and participations, provided a valuable platform for fostering dialogue and exchanging perspectives among member nations on global economic developments and growth prospects.

The meetings aimed to bolster international cooperation, fortify the stability of the global financial system, advance efforts towards sustainable development, and devise effective solutions. Additionally, the meetings emphasised the significance of knowledge-sharing and capacity-building among member states, empowering them to foster sustainable growth.

Al Hussaini called for concerted international efforts to define a new action plan to address emergencies resulting from poverty and to improve the operational efficiency of the World Bank to implement financing requirements for projects more quickly, especially transformative projects for energy, water, health, and digital transformation infrastructure. In addition, he advocated for finding new tools to prepare for and respond to crises, by activating financing tools in partnership between development financial institutions and the private sector. During the IMFC plenary session, attendees considered the Global Policy Agenda set by the IMF’s Managing Director, titled ‘Rebuild, rebound, renew’. In his keynote address, Mohamed Al Hussaini noted that the global recovery remains uneven. He shed light on his concern for fragile and conflict-affected states because they disproportionately bear the burden of ongoing geopolitical developments and tighter global financial conditions.

He also voiced his concern about the increase in interest payments, the general depletion of buffers, and the lacklustre medium-term growth prospect, particularly in emerging markets and developing economies, as the IMF Managing Director mentioned. He noted that in the current uncertain global environment, multilateral cooperation needs to ensure food and energy security, strengthen trade, support economies needing debt reduction, and provide financing for climate adaptation while supporting climate transition efforts.

The UAE delegation attended the MENAP meeting, gathering finance ministers, central bank governors, and heads of regional financial institutions of the Middle East, North Africa, Afghanistan, and Pakistan region, which covered the importance of macroeconomic stability and debt sustainability, addressing geopolitical challenges and improving medium-term growth prospects.

WAM