International criticism warns of the risks of high public debt in the region

The Director General of the International Monetary Fund, Christina Georgeva, expected that the growth rate for the Middle East and North Africa will reach about 3.6% in 2025, driven by the recovery of oil production and the decline in regional conflicts.

Georgiviva added during the “Public Finance Forum for Arab States” in Dubai today, that medium -range expectations still indicate weaker growth than it was before the pandemic.

She continued: Policy makers generally succeeded in curbing inflation, but not everywhere, as inflation returned to rise in some countries. This may lead to variation in interest rates across countries and high borrowing costs for emerging and developing economies.

She said: Many countries in this region face pressure on public debt, as its level exceeds 70% of GDP. Warning about the risks of low growth and debt scenario.

She continued: Governments face a difficult task in containing high debt levels in light of the increasing spending needs. This region faces an urgent need to create jobs, enhance social security networks, build the ability to adapt to natural disasters, and support economic diversity. The requirements of national security and reconstruction after conflicts are also great.

The forum is organized in cooperation between the “Arab Monetary Fund” and the “International Monetary Fund” and the Ministry of Finance in the UAE.