Central bank governors and finance ministers from emerging economies will gather in AlUla, Saudi Arabia, to discuss the regional and global macroeconomic situation. The meeting comes as US President Donald Trump’s tariff policies have increased uncertainty in international trade.
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The Emerging Markets Conference, co-hosted by the International Monetary Fund (IMF) and the Saudi Arabian Ministry of Finance, will take place on February 16-17 and will cover a range of topics including policy challenges, fiscal consolidation and debt management, financial system resilience, and dealing with trade tensions. IMF Managing Director Kristalina Georgieva and Saudi Arabian Finance Minister Mohammed Al Jadaan are scheduled to deliver opening and closing remarks.
The Emerging Markets Summit is the third event Georgieva has attended in the Middle East in recent weeks, after speaking at the Arab Financial Forum and the World Government Summit in Dubai. The IMF chief used the Dubai event to deliver a message she has reiterated in recent months: the world economy is facing a period of low growth and high debt in the medium term. In its latest report, the IMF forecasts economic growth in the Middle East and North Africa (MENA) region at 3.6% this year, with the region facing a more somber medium-term outlook.
Speaking at the 210th Arab Finance Forum in Dubai recently, Ms. Georgieva noted: "Many countries in MENA are facing similar pressures, with debt levels exceeding 70% of Gross Domestic Product (GDP). This puts economies in the region at risk of being trapped in a low-growth-high-debt scenario."
The Trump administration’s tariff policies are expected to introduce a high level of uncertainty into the global economic outlook, especially trade. Mr. Trump has announced a series of tariffs that he has threatened to impose on trading partners to address what he calls unfair trade practices. Several emerging economies will be affected by the US tariffs, including Brazil and India. Indian Prime Minister Narendra Modi met with Mr. Trump on February 13 to discuss the issue.
Speaking from the White House on February 13, Mr. Trump said that he and the Indian Prime Minister had agreed to hold talks to “resolve the longstanding differences” between the two countries. The US is India’s largest trading partner, while India is the US’s 10th largest trading partner. In 2024, India’s exports to the US will reach $77.5 billion, while US exports to India will reach $40.7 billion.
The Saudi finance minister and the head of the IMF have warned of rising protectionism. Georgieva urged Middle Eastern countries to find ways to boost their economies, with trade not being a viable solution to economic growth as it once was. "There is an urgent need in the Middle East to create jobs, strengthen social safety nets, build resilience to natural disasters and support economic diversification," Georgieva added.
According to Arab News , on February 15, Pakistani Finance Minister Muhammad Aurangzeb arrived in Saudi Arabia to attend the conference at the invitation of his counterpart Mohammed Al-Jadaan.
"The meeting between the two finance leaders of the two countries underscored the shared commitment to building bridges of economic cooperation and promoting shared prosperity," Pakistan's finance ministry said in a statement after Aurangzeb's meeting with Al-Jadaan.
“The discussions highlighted opportunities to enhance bilateral trade, investment and financial cooperation, with both ministers expressing their commitment to harnessing the full potential of the Strategic Partnership between the two countries,” the statement added.
Pakistan is navigating a fragile economic recovery under a $7 billion IMF loan program guaranteed through September 2024, after implementing austerity measures and policy reforms to stave off a sovereign debt default in 2023.
To facilitate Pakistan's economic recovery, Saudi Arabia signed 34 memorandums of understanding (MoUs) worth $2.8 billion in October last year to boost private sector investment in key sectors, including energy, infrastructure and technology.
During their meeting, the two ministers explored avenues of cooperation in the areas of infrastructure, energy, technology and finance, stressing the need for continued dialogue and joint initiatives to facilitate investment flows and economic opportunities that could benefit the wider region.
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