In his speech during the presidency of the meetings of the World Bank and the International Monetary Fund
Hassan Abdullah, the governor of the Central Bank of Egypt, said that the repercussions of the war in Ukraine and the ongoing pandemic are significantly affecting the global economic outlook, and livelihoods, in addition to creating difficult conditions for policy makers. He added during the opening speech at the plenary session of the annual meetings of the World Bank Group and the International Monetary Fund, which he chaired, in Washington, DC, that inflation rates are at their highest levels in several decades, with food and energy insecurity, increasing supply chain disruptions, and debt-related vulnerabilities.He continued: “Financial conditions are shrinking, while capital inflows and exchange rate fluctuations have increased.”
He added, “My concern is mostly about low- and middle-income countries that are facing all these challenges. They also face enormous development challenges, with insufficient funding and limited access to the worst.”He added: Many of these countries are located in the Middle East and Africa, where Egypt is located due to its critical geographical location.
He said that the IMF and the World Bank Group play a central role in supporting members at this crucial stage. In addition to core funding, policy advice, and capacity development that has been made available in the past two years.He noted that priorities should be emphasized, explaining that the Bretton Woods institutions, in their policy advice, need to guide policy responses to countries, while continuing to pay attention to social and political economics considerations.
This applies to fiscal responses to rising food and energy prices, and to the complex trade-offs facing monetary policy. More needs to be done to address the growing debt vulnerabilities affecting a growing proportion of emerging markets and developing countries.He noted that the IMF needs to continue working with partners to address current and future debt challenges. The World Bank Group must also help prevent hard-won development gains, particularly in the poorest countries, from being reversed.
