International Monetary Fund: Gulf countries backed developing countries with $54 billion

The International Monetary Fund said that over the past five years, the Arab states of the Persian Gulf have provided $54 billion in aid to many developing countries.

The Fund’s CEO, Kristalina Georgieva, said in her speech at the Seventh Arab Public Finance Forum in Dubai today, Sunday, that the Ukrainian crisis and climate issues exacerbate the risks of food insecurity in the poorest countries.

Georgieva said the Gulf Arab states have provided $54 billion to developing countries, countries with low national incomes and countries suffering from conflict.

And she warned that chronically rising youth unemployment rates in developing countries threaten social stability in the region and the world as a whole, expecting the inflation rate to exceed 10% for the fourth year in a row.

At the end of December 2022, the International Monetary Fund predicted that oil producers in the Gulf and the Middle East would reap a trillion dollars between 2022 and 2026, and that the six countries of the Gulf Cooperation Council would receive the largest share of the expected benefits.

Georgieva pointed out that the cuts in oil production under the OPEC+ agreement could lead to lower oil revenues, while problems in oil-importing countries will remain, as a number of the region’s economies faced rising debt ratios relative to gross domestic a product that in some countries approaches 90%.

Source: agencies

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