IMF Chief Says Global Economy Facing Sharp Decline, Difficult Journey

Director-General of the International Monetary Fund (IMF) Kristalina Georgieva. Asharq Al-Awsat
Director-General of the International Monetary Fund (IMF) Kristalina Georgieva. Asharq Al-Awsat
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IMF Chief Says Global Economy Facing Sharp Decline, Difficult Journey

Director-General of the International Monetary Fund (IMF) Kristalina Georgieva. Asharq Al-Awsat
Director-General of the International Monetary Fund (IMF) Kristalina Georgieva. Asharq Al-Awsat

Director-General of the International Monetary Fund (IMF) Kristalina Georgieva has expressed concern that the global economy was facing a severe decline and a difficult journey despite the tremendous efforts of the G20 to promote policies that restore confidence in pluralism, overcome the pandemic with minimal losses, while working to improve people’s lives, empower women and create greener and fairer economies.

In an interview with Asharq Al-Awsat, Georgieva revealed a study of a package of options to further adapt the IMF’s lending toolkit to support eligible countries. She noted that by the end of 2020, expectations point to a global economic contraction by 4.4 percent – a bit lower than early 2020 estimates.

But she warned that the world was still facing the worst recession since the Great Depression, adding that the road ahead would be steep and the journey difficult.

The IMF director said that the partial recovery achieved so far was due to extraordinary measures to address the health crisis and protect the economy. She explained that G20 governments have provided around $12 trillion in financial support to families and businesses.

Unprecedented monetary policy measures kept the credit flowing, she underlined, which helped millions of companies stay in business.

On poor countries, the IMF Director said that access to financing remained difficult, adding that the Fund expects the recovery to be partial and uncertain, because there is currently no final remedy to the health crisis.

According to Georgieva, health measures remain a top priority, along with concerted global efforts to secure vaccines and treatments for a permanent exit from the epidemic, pointing out that until then, policymakers must avoid early withdrawal of financial and monetary support to prevent a wave of bankruptcies and unemployment.

On her expectations regarding the reopening of the European economy, she noted that recent IMF estimates for Europe indicated that GDP would decline by 7% in 2020. As in the global economy, a partial and uneven recovery is expected, while real GDP is estimated to recover by 4.7% in 2021.

Georgieva stressed that the Europeans have acted very decisively to mitigate the effects of the external shock, as fiscal measures were estimated at 6 percent of GDP for advanced European economies and 3 percent of GDP for emerging economies.

She pointed out that the unprecedented political response to the health crisis prevented a much worse outcome, saying that at least 54 million jobs were supported through furlough plans in Europe.

Nevertheless, Georgieva pointed to great risks in the future, especially because the course of the epidemic remains uncertain, and the second wave of infections intensifies in Europe.

Regarding the role of the IMF in the coronavirus pandemic, she said the Fund was the center of the global financial safety net.

Georgieva said that since the beginning of the outbreak, the IMF has provided more than $100 billion in funding to 81 countries, including 48 low-income states. In addition, the Fund worked to strengthen the members’ ability to benefit from emergency funding and expanded increased access until 2021.

She also revealed that the IMF was studying a package of options to further adapt the Fund’s lending toolkit to support countries at this moment of extreme uncertainty.

Georgieva said the IMF was ready to help members move forward in a post-pandemic world by investing in people, the digital economy and the green economy.



Saudi-US Business Council: Trump’s Visit Marks New Chapter in Partnership

Charles Hallab, Chairman of the Saudi-US Business Council (Asharq Al-Awsat) 
Charles Hallab, Chairman of the Saudi-US Business Council (Asharq Al-Awsat) 
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Saudi-US Business Council: Trump’s Visit Marks New Chapter in Partnership

Charles Hallab, Chairman of the Saudi-US Business Council (Asharq Al-Awsat) 
Charles Hallab, Chairman of the Saudi-US Business Council (Asharq Al-Awsat) 

US President Donald Trump’s upcoming visit to Saudi Arabia, Qatar, and the UAE is being seen as a milestone, with its primary focus on economics, investment, and strategic deal-making.

Accompanying him is an unprecedented delegation of US business leaders and CEOs from major sectors including finance, banking, cryptocurrency, technology, artificial intelligence, healthcare, manufacturing, and hospitality. These leaders are seeking to open new investment horizons, forge partnerships, and follow Trump’s lead in crafting “win-win” deals that strengthen bilateral commercial ties.

In an interview with Asharq Al-Awsat, Charles Hallab, Chairman of the Saudi-US Business Council, said that Trump’s choice of Saudi Arabia as his first international destination signals the beginning of a new era in relations between the United States, Saudi Arabia, the Gulf region, and the broader Middle East.

“Beyond the warm welcome and political discussions, this visit will feature the announcement of new business deals and a celebration of the success of previous agreements,” he said. “More importantly, it marks the start of a deeper phase of economic cooperation and private-sector engagement between the two countries. The agreements set to be signed will significantly strengthen these ties and open doors to diverse investment opportunities.”

Driving Business Forward

Hallab, who is also the founder of Barrington Global, explained that the Saudi-US Business Council is playing an active role in this visit. “Our members and partners are fully engaged in the Investment Forum at the King Abdulaziz International Conference Center in Riyadh. There is considerable anticipation surrounding the major deals to be announced, and I can confirm that several significant agreements and new bilateral initiatives will be unveiled,” he said.

He added that interest spans numerous sectors—from defense, aerospace, and technology to newer areas like education, tourism, culture, and quality of life.

He said: “American business leaders are enthusiastic about forming partnerships with Saudi counterparts. President Trump is also keen to attract nearly $1 trillion in Saudi investments to the United States. This mutual interest shows that both sides are committed not only to commercial exchange but to meaningful, strategic collaboration.”

Hallab noted that this year’s investment forum stands out from those held in the past. “There is a new energy—an unprecedented focus on investments that align with the long-term economic goals of both nations. It’s no longer about short-term returns. Investments are being evaluated based on their broader impact, sustainability, and alignment with national visions such as Saudi Arabia’s Vision 2030.”

He explained that Saudi investors are looking for opportunities in the US that make sense within this broader strategy—not just financial gains, but partnerships that advance their long-term objectives. “I’m very optimistic. The pieces are falling into place in a way that serves both countries’ goals, which is exactly what we at the Business Council aim to promote—mutual benefit and shared growth.”

The Political Dimension

When asked about the role of politics, including negotiations with Iran and potential ceasefires in Gaza, Hallab acknowledged their influence. “We closely monitor political developments as they inevitably impact business decisions. But Trump’s visit highlights Saudi Arabia’s rising global stature, both economically and diplomatically.”

He praised the remarkable progress of Vision 2030, especially in terms of regulatory reform, anti-corruption efforts, and economic diversification, saying: “Having worked in the region for nearly 30 years, I’ve never seen changes of this scale and speed. Today, unemployment is under 7%, women make up 34% of the workforce, and over half of Saudi GDP comes from the non-oil sector. Saudi Arabia has emerged as a dynamic, diversified economy and a global tourism destination.”

Hallab concluded: “We at the Saudi-US Business Council are proud to contribute to this transformation and are committed to deepening our shared economic future.”