The report also indicated that the UAE’s current account surplus is estimated to rise to 8.4% in 2024 and 8.3% in 2025…reports Asian Lite News
The World Bank has raised its forecast for the UAE’s real GDP growth to 3.9% in 2024, compared to its previous forecast in January of 3.7%.
In an economic update published today on the latest economic developments in the Middle East and North Africa region, the World Bank said it had raised its forecast for the UAE’s economic growth to 4.1% in 2025 from its previous forecast of 3.8%.
The report also indicated that the UAE’s current account surplus is estimated to rise to 8.4% in 2024 and 8.3% in 2025, and that the country will achieve a surplus of 5.1% in its fiscal balance by the end of this year and 4.8% next year.
For MENA, the World Bank said that the region is forecasted to grow 2.7 percent in 2024, which represents a return to the low growth in the decade before the global pandemic. For 2025, the report said that the MENA region is expected to grow at 4.2 percent. In the GCC economies, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, growth will improve to 2.8 percent in 2024 and 4.7 percent in 2025. The pickup in growth is mainly driven by higher oil output due to the phasing out of oil production cuts and robust growth in the non-oil sector linked to diversification efforts and reforms.
MENA’s GDP per capita is expected to grow a modest 1.3 percent in 2024, according to the bank, which is an improvement from the 0.5 percent rate in 2023. This increase is driven almost entirely by GCC economies, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates, whose GDP per capita growth in 2024 is projected to be 1.0 percent, a significant improvement from the 0.9 percent decline in GDP per capita in 2023.
The Spring Meetings of the International Monetary Fund and the World Bank Group will bring together central bankers, ministers of finance and development…reports Asian Lite News
The United Arab Emirates, represented by the Ministry of Finance, announced its participation in the 2024 Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) taking place in Washington DC, from 15th to 20th April 2024.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, will head the UAE delegation, which includes Ali Abdullah Sharafi, Acting Assistant Undersecretary for International Financial Relations, 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 Ministry of Finance, and several specialists from the Ministry of Finance and the Central Bank of the UAE.
On the sidelines of the Spring Meetings, Mohamed Al Hussaini will participate in the second G20 Finance Ministers and Central Bank Governors (FMCBG) Meeting led under the Brazilian presidency for the year 2024, and will deliver a keynote at the International Monetary and Financial Committee (IMFC) plenary, and chair the joint WBG-IMF Development Committee plenary.
The Minister will also meet with the IMF Managing Director Kristalina Georgieva and other participating finance ministers, central bank governors, and heads of regional financial institutions of the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region.
On the UAE’s participation in the upcoming Spring Meetings, Mohamed bin Hadi Al Hussaini emphasised the importance of further global collaboration to establish effective and sustainable solutions for all developmental needs. He also emphasised the critical role of the Spring Meetings of the IMF and WBG as a platform to facilitate extensive dialogue among a wide range of key stakeholders.
He said, “The UAE Ministry of Finance will aim to advance discussions on macroeconomic stability and debt sustainability, as well as address the ripple effects of geopolitical challenges on global trade and medium-term growth prospects. In the context of the current landscape, it will be vital to strengthen multilateral efforts to accelerate sustainable development and push the world towards an inclusive and resilient path.”
The Spring Meetings of the International Monetary Fund and the World Bank Group will bring together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organisations and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness.
The meetings will also feature seminars, regional briefings, press conferences, and other events focused on the global economy, international development, and the world’s financial system.
The main ministerial meetings and events will take place between 17th and 19th of April, with other sideline events and activities taking place during the week between 15th and 20th of April. (ANI/WAM)
People buy peanuts at a shop in northwest Pakistan's Peshawar on Dec. 9, 2020. (Photo by Umar Qayyum/Xinhua/IANS)
The World Bank report highlighted that Pakistan is expected to miss its primary budget target…reports Asian Lite News
The World Bank has warned that more than 10 million individuals in Pakistan could slip into poverty, primarily as a result of sluggish economic growth and soaring inflation, projected to reach a staggering 26 percent for the current fiscal year.
The World Bank’s bi-annual report titled ‘Pakistan Development Outlook’ sketched out a very grim picture of the country’s economy, giving indications that it is poised to fall short of meeting any of its major macroeconomic targets.
The WB report also highlighted that Pakistan is expected to miss its primary budget target as well, which would keep Islamabad in deficit for at least three more years.
“Despite a broad-based yet nascent economic recovery, poverty alleviation efforts remain insufficient,” said Sayed Murtaza Muzaffari, lead author of the WB report.
“Economic growth is projected to stagnate at a paltry 1.8 per cent maintaining the poverty rate at around 40 per cent with approximately 98 million Pakistanis already grappling with poverty. The vulnerability of those hovering just above the poverty line, with 10 million individuals at risk of slipping into poverty in the face of shocks,” he added.
The WB report also warns that the persistent rise in inflation and cost-of-living crisis coupled with high transportation costs had the potential to trigger an increase in out-of-school children and delayed medical treatments, while food security remains a serious and major challenge in the country.
“Poverty reduction is projected to stall in the medium term due to weak growth, low real labor incomes, and persistently high inflation,” stated the WB report.
“Chronic inflation in the absence of substantial growth, along with policy uncertainty, could cause social discontent and have negative welfare impacts,” the report added.
As far as Pakistan’s economic growth is concerned, WB report stated that Islamabad’s growth is expected to grow by only 1.8 per cent during the current fiscal year ending June 2024, while the official target is 3.5 per cent.
Moreover, growth during the next fiscal year is also expected to be at only 2.3 per cent, which is even lower than the population growth rate of 2.6 per cent.
“The subdued recovery reflects right monetary and fiscal policy, continued import management measures aimed at preserving scarce foreign reserves, and muted economic activity amid weak confidence,” stated the WB report.
All the above-mentioned and many more such indicators on circular debts, inflation and GDP growth show a very grim and weak picture of Pakistan’s economy and its growth forecasts for at least three years or more, giving no hopes to the locals, who are fast falling under the poverty line every day.
Growth in oil importers also slowed somewhat last year, reflecting anemic private sector activity, the report said, adding that growth is expected to edge up to 3.2 percent this year and 3.7 percent in 2025…reports Asian Lite News
The World Bank expected the UAE’s real GDP to grow by 3.4 percent in 2023, rising to 3.7 percent in 2024 and to 3.8 percent in 2025. According to the Global Economic Prospects report released today, the World Bank forecast the growth in the Gulf Cooperation Council (GCC) countries to rise to 3.6 percent in 2024 and 3.8 percent in 2025, noting to last year’s robust non-oil sector activity.
The report said that the growth rate in the Middle East and North Africa (MENA) region slowed down sharply to 1.9 percent in 2023, as the region faced multiple headwinds, including oil production cuts, elevated inflation, and weak private sector activity in oil-importing economies. The report also expected the growth rate in the MENA region to pick up to 3.5 percent in 2024 and 2025.
Growth in oil importers also slowed somewhat last year, reflecting anemic private sector activity, the report said, adding that growth is expected to edge up to 3.2 percent this year and 3.7 percent in 2025. According to the report, the growth in Saudi Arabian is projected to grow by 4.1 percent this year, rising to 4.2 percent next year, while the Kuwaiti economy is expected to grow by 2.6 percent by the end of this year, rising to 2.7 percent next year. The Bahraini economy is expected to grow by 3.3 percent in 2024 and 3.2 percent in 2025.
The report expected Qatar’s economy to grow by 2.5 percent this year, rising to 3.1 percent next year, while the economy of Oman is estimated to grow by 2.7 percent in 2024 and 2.9 percent in 2025.(ANI/WAM)
\The report said that the growth rate in the Middle East and North Africa (MENA) region slowed down sharply to 1.9 percent in 2023…reports Asian Lite News
The World Bank expected the UAE’s real GDP to grow by 3.4 percent in 2023, rising to 3.7 percent in 2024 and to 3.8 percent in 2025.
According to the Global Economic Prospects report released today, the World Bank forecast the growth in the Gulf Cooperation Council (GCC) countries to rise to 3.6 percent in 2024 and 3.8 percent in 2025, noting to last year’s robust non-oil sector activity.
The report said that the growth rate in the Middle East and North Africa (MENA) region slowed down sharply to 1.9 percent in 2023, as the region faced multiple headwinds, including oil production cuts, elevated inflation, and weak private sector activity in oil-importing economies. The report also expected the growth rate in the MENA region to pick up to 3.5 percent in 2024 and 2025.
Growth in oil importers also slowed somewhat last year, reflecting anemic private sector activity, the report said, adding that growth is expected to edge up to 3.2 percent this year and 3.7 percent in 2025.
According to the report, the growth in Saudi Arabian is projected to grow by 4.1 percent this year, rising to 4.2 percent next year, while the Kuwaiti economy is expected to grow by 2.6 percent by the end of this year, rising to 2.7 percent next year. The Bahraini economy is expected to grow by 3.3 percent in 2024 and 3.2 percent in 2025.
The report expected Qatar’s economy to grow by 2.5 percent this year, rising to 3.1 percent next year, while the economy of Oman is estimated to grow by 2.7 percent in 2024 and 2.9 percent in 2025.
After 6.2 per cent in 2021 which is attributed to a low base due to the Covid-19 pandemic, the World Bank estimates global growth cooled to 3 per cent in 2022 and then to 2.6 per cent in 2023…reports Asian Lite News
The World Bank has forecast a bleak outlook for the global economy with growth expected to slow down for a third year in a row in 2024, according to its Global Economic Prospects report released on Tuesday.
The report projects the world economic growth to come down further to 2.4 per cent in 2024, before edging up to 2.7 perc ent in 2025 — well below the 3.1 percent average growth seen in the 2010s.
After 6.2 per cent in 2021 which is attributed to a low base due to the Covid-19 pandemic, the World Bank estimates global growth cooled to 3 per cent in 2022 and then to 2.6 per cent in 2023.
Hamstrung by the Covid-19 pandemic, then the war in Ukraine and ensuing spikes in inflation and interest rates around the world, the first half of the 2020s now looks like it will be the worst half-decade performance in 30 years, the report states.
“Yet beyond the next two years, the outlook is dark,” Indermit Gill, the bank’s chief economist, said in a statement.
“The end of 2024 will mark the halfway point of what was expected to be a transformative decade for development — when extreme poverty was to be extinguished, when major communicable diseases were to be eradicated, and when greenhouse-gas emissions were to be cut nearly in half,” Gill added.
That would make growth weaker in the 2020-2024 period than during the years surrounding the 2008-2009 global financial crisis, World Bank Deputy Chief Economist Ayhan Kose said.
Meanwhile, the World Bank sees India’s growth inching up from 6.3 per cent in 2023-24 to 6.4 per cent in 2024-25 and 6.5 per cent in 2025-26.
“India is anticipated to maintain the fastest growth rate among the world’s largest economies, but its post-pandemic recovery is expected to slow,” the World Bank’s report said.
Investment is envisaged to decelerate marginally but remain robust, supported by higher public investment and improved corporate balance sheets, including in the banking sector, the report added.
World Bank Chief underscored the urgency of action, particularly with the looming demographic shift where 1.1 billion young people will enter the working-age population in the next decade….reports Asian Lite News
During the International Development Association (IDA) Midterm Review, World Bank President Ajay Banga stressed the necessity of a robust, coordinated, and all-encompassing approach to address the intricate challenges confronting today’s developing nations.
The event took place in Zanzibar, Tanzania, with Banga extending condolences for recent floods in the region, according to a release by the World Bank.
Addressing Presidents Samia Suluhu Hassan and Hussein Ali Mwinyi, Banga acknowledged the evolving mission of IDA in the face of challenges such as poverty, climate crises, food insecurity, and the aftermath of the global pandemic.
He underscored the urgency of action, particularly with the looming demographic shift where 1.1 billion young people will enter the working-age population in the next decade.
The International Development Association (@WBG_IDA) is the part of the @WorldBank that helps the world’s 75 poorest countries with programs that boost economic growth + build resilience + improve people’s lives.
Banga said, “The landscape we face today is far more complex: declining progress in our fight against poverty, an existential climate crisis, food insecurity, fragility, a fledgling pandemic recovery, and conflict that touches lives beyond the frontlines”.
Banga added, “Meanwhile, in the next 10 years, 1.1 billion young people across the Global South will become working-age adults. Yet, in the same period and same countries, we are only expected to create 325 million jobs. The cost of inaction is unimaginable”.
Banga highlighted the necessity of reliable electricity access, pointing out that 600 million people in Africa, including 36 million in Tanzania, lack this basic necessity.
He stressed the World Bank’s commitment to creating a world free of poverty on a livable planet, outlining a vision that expands the scope of both the World Bank and IDA.
Banga said, “With $5 billion from IDA – we are on a mission to deliver reliable, affordable, renewable electricity to 100 million Africans before 2030”.
To illustrate the transformative power of electrification, Banga shared a success story from Nigeria, where an IDA-funded mini-grid system significantly improved various aspects of community life, from agriculture to healthcare and education.
Expressing the ambition to deliver reliable, affordable, renewable electricity to 100 million Africans by 2030, Banga urged for a substantial increase in funding.
He called for the next replenishment of IDA to be the largest in history, urging donors, shareholders, and philanthropies to step up.
Banga said, “Over the last 10 years, the number of items in IDA that we have been asked to measure has grown from 120 to more than 1,000. As a result, our team and governments spend more time trying to tick the box than we do delivering results”.
In addition to financial support, Banga highlighted the importance of reforms, emphasizing the need for efficiency and accessibility.
He proposed streamlining funds, creating fewer funds with more flexibility, and reducing the bureaucratic burden by focusing on impactful outcomes.
Concluding his remarks, Banga invoked the spirit of cooperation that led to the establishment of the World Bank, quoting U.S. Treasury Secretary Morgenthau’s observation that the solution was possible only due to “the goodwill, good sense, and sincerity of all the nations.”
Banga said, “After Bretton Woods, U.S. Treasury Secretary Morgenthau observed that the World Bank was the solution to one of the knottiest problems. But, he also said that the solution was made possible because “Only the goodwill, good sense and sincerity of all the nations could have found it.”
He encouraged participants to reimagine IDA’s potential and commit to its founding vision of a world where poverty is not a barrier to human potential.
The two-day event offers an opportunity for reflection and a collective commitment to the principles and vision that define IDA’s journey. (ANI)
The World Bank has made net commitments totalling USD 3.5 billion across seven active regional integration projects in Central Asia…reports Asian Lite News
For more than thirty years, the World Bank has consistently supported the development efforts of Central Asian countries, striving to improve living standards and promote economic growth.
According to the World Bank, embracing a forward-looking strategy, the Bank is intensifying its regional approach, promoting cross-border cooperation, dialogues, and knowledge exchange, with a particular focus on vital sectors such as energy, water, transportation, and healthcare.
Increased electricity trade among Central Asian countries could conservatively generate economic benefits of up to USD 6.4 billion between 2020 and 2030.
The World Bank has made net commitments totalling USD 3.5 billion across seven active regional integration projects in Central Asia.
Estimated costs from insufficient cooperation in the use of regional water-energy resources amount to more than USD 4.5 billion per year.
The Climate Adaptation and Mitigation Program for Aral Sea Basin (CAMP4ASB) has reached nearly 135,000 beneficiaries, creating over 27,500 jobs since 2014.
CAWEP has facilitated 23 water, energy, and environmental investments worth approximately USD 3.78 billion since 2009.
A road rehabilitation project in Kyrgyz Republic since 2010 directly benefited 1.2 million people, enhancing connectivity and economic opportunities.
World Bank Plans Packages For Poorest Nations
The Kazakhstan – East West Roads Project significantly reduced cargo transportation time along the Western Europe – Western China road corridor from 45 days to 8-10 days.
Despite challenges in connectivity and climate vulnerability, the World Bank aims to turn regional coordination into a development opportunity.
The World Bank is working closely with Central Asian countries to strengthen connections in water and energy, trade and logistics, climate change, information technology, and healthcare.
A regional electricity market is being developed to harness economic benefits and enhance energy interconnectivity, emphasizing a diverse energy mix.
The Central Asia Water and Energy Program (CAWEP) has been instrumental in supporting regional cooperation, facilitating investments, and enhancing sector capacity.
Sustainable Land Management for Economic Growth:
Sustainable land management measures, including efficient irrigation systems, led to income increases for over 10,000 farmers in Uzbekistan and Tajikistan.
The World Bank committed USD 1.3 billion to mitigate COVID-19 impacts, supplying ventilators and supporting social protection programs.
A Central Asia One Health Framework for Action is being developed to address zoonotic diseases, antimicrobial resistance, and food safety.
The World Bank collaborates with various partners, including the Central Asia Regional Economic Cooperation (CAREC) Program, Asian Development Bank (ADB), European Union, Switzerland, United Kingdom, EBRD, IMF, USAID, UNDP, AIIB, EIB, IsDB, and others to amplify its impact.
As the World Bank marks its 30th anniversary of engagement in Central Asia, it underscores a shared vision with the countries, focusing on regional challenges and global goals. The Bank remains committed to innovative approaches and sustained collaboration, aiming for a resilient, sustainable, and prosperous future for Central Asia. (ANI)
The USD 34 billion health portfolio, active in over 100 countries, will focus on enhancing surveillance and early warning systems, climate-proofing health facilities, and strengthening the capacity of health workers…reports Asian Lite News
In an initiative announced at COP28, the World Bank unveiled its Climate and Health Program to combat the escalating health risks triggered by climate change in low- and middle-income countries.
According to a press release by the World Bank, with projections indicating at least 21 million additional deaths by 2050 due to climate-related health hazards, the program aims to fortify health systems, particularly in vulnerable regions of sub-Saharan Africa and South Asia.
The initiative involves comprehensive strategies, including assessing climate and health vulnerabilities, bolstering investments in resilient health systems, and mobilizing funds for immediate action.
The World Bank emphasizes the urgency of addressing five key health risks–extreme heat, stunting, diarrhoea, malaria, and dengue–that could claim millions of lives within the next three decades.
Mamta Murthi, Vice President for Human Development at the World Bank, highlighted the program’s significance in breaking the cycle of ill health and poverty caused by climate change.
Murthi said, “Climate change amplifies health risks, creating a cycle of ill health and poverty with far-reaching consequences for human capital development. Through the Climate and Health Program, the World Bank will use its knowledge and financing to help countries address health risks stemming from climate change, work across related sectors, and bring together partners to maximize financing and harmonize investments and actions.”
The Climate and Health Program seeks to generate evidence, increase financing for tailored solutions, and forge strong partnerships with entities such as the World Health Organization, Gavi, The Global Fund, and foundations.
Notably, the World Bank will co-convene a Development Bank Working Group for Climate-Health Finance to align and maximize investments.
The USD 34 billion health portfolio, active in over 100 countries, will focus on enhancing surveillance and early warning systems, climate-proofing health facilities, and strengthening the capacity of health workers.
As the climate crisis continues to impact the well-being of global populations, the World Bank’s commitment to addressing this paramount health challenge underscores the need for immediate, collective action.
The success of the Climate and Health Program hinges on today’s decisions, shaping the health outcomes of current and future generations. (ANI)
The agreement comprising five projects…reports Asian Lite News
The Bangladeshi government and the World Bank have inked a loan agreement worth over $1 billion to help the country achieve resilient and inclusive growth by improving early childhood development, secondary education, riverbank protection and navigability, urban primary health, and gas distribution efficiency.
The agreement comprising five projects was signed in Dhaka on Thursday by Sharifa Khan, Senior Secretary of Bangladesh’s Economic Relations Division, and Abdoulaye Seck, World Bank Country Director for Bangladesh and Bhutan, Xinhua news agency reported.
Among the projects was the Bangladesh Enhancing Investments and Benefits for Early Years Project which will help improve early childhood development by providing cash transfers and counseling services to about 1.7 million pregnant women and mothers of children under four in vulnerable households.
The Learning Acceleration in Secondary Education Operation Project will help strengthen secondary education by improving learning outcomes and teaching quality, said the Washington-based lender.
It said the Jamuna River Sustainable Management Project 1 and Urban Health, Nutrition and Population Project will improve primary healthcare services for treatment, prevention and referral for common illnesses including mosquito-borne diseases like dengue and help improve riverbank protection and navigability in the Jamuna River, protecting about 2,500 hectares of land from riverbank erosion and flooding.
Apart from this, the bank said the Gas Sector Efficiency Improvement and Carbon Abatement Project will help improve the efficiency of gas distribution and end-use through pre-paid metering systems and reduce methane emissions along the natural gas value chain.
“Bangladesh and the World Bank have a strong partnership focused on achieving the country’s vision of upper-middle-income status by 2031 and higher income status by 2041,” said Khan.
Seck said, “Bangladesh is an important partner for the World Bank toward its vision of a world free of poverty on a livable planet. Since the country’s independence, the World Bank and Bangladesh have had an impactful partnership that lifted millions of Bangladeshi people out of poverty.”‘
