While reflecting on the global outlook for 2023-24, Kristalina Georgieva, the Managing Director of the International Monetary Fund, said this year might finally be a critical ‘turning point’ for the world economy.

“We are finally seeing growth coming back up and inflation going down after a long period where everything was the exact opposite – growth was down, and inflation was up,” the IMF chief said Sunday in Dubai.

Georgieva said: “More specifically for impressive growth projections, we expect the world to expand by 2.9 per cent in 2023; this is lower than last year’s growth… last year was 3.4 per cent… and then projections are for 3.1 per cent in 2024. This is below the global average of 3.8 per cent. So even in ’24, we will not be returning to growth of the kind the world needs.”

“What has shaped this less pessimistic outlook are three factors. One is the remarkable resilience of labour markets in the US and Europe, resulting in strong consumer demand. Second, China re-opening on December 8 last year, drastically improving recovery projections. Third, adjustment of Europe as it withdraws from dependency on Russian oil and gas.”

“Now, this is coupled with the headline inflation finally going down, although core inflation has not yet turned that off in the course,” she explained.

The IMF chief and other global banking and finance leaders, including those from Islamic finance, spoke at the seventh annual Arab Fiscal Forum, taking place at the World Government Summit. Scheduled to begin on Monday, February 13, the World Government Summit in Dubai will see participation from an exhaustive list of global leaders and celebrities.

Sunday’s forum kicked off with the participation of several heads of international organisations, experts and decision-makers. During her keynote speech, Georgieva spoke about the vital role resilient public finances can play in protecting people and economies. She also praised Gulf countries for extending their support to assist low-income nations in the region during crises.