(MENAFN- The Peninsula)
By Satish Kanady
DOHA: Qatar along with 12 other countries has urged International Monetary Fund (IMF) to carry out extra works to better understand the dynamics of capital outflows from emerging markets and developing countries (EMDCs).
“Lower commodity prices and uncertainty about the pace of US monetary policy tightening has put downward pressure on emerging market economies. The period of buoyant activity spurred by rapid credit expansion is giving way to rising corporate sector vulnerabilities as well as volatile capital flows and exchange pressures We call on the Fund to carry out additional work to better understand the dynamics of capital outflows” Obaid Humaid Al Tayer Minister of State for Financial Affairs for UAE said on behalf of 13-member group countries including Qatar UAE Oman Bahrain and Kuwait at the 33rd meeting of International Monetary and Financial Committee (IMFC) that concluded in Washington yesterday.
He said the Middle East region is facing considerable challenges including from non- economic factors and spillovers from global market turbulences. “Oil exporting countries in the GCC are facing unprecedented fiscal pressures from the protracted decline in oil prices. Thanks to the prudent building of large buffers many countries are well-positioned to pace their adjustment over several years and thus limit the impact on growth. Many GCC countries have already taken fiscal consolidation measures notably by reforming fuel subsidies and reducing fiscal spending.”
Countries undergoing political transitions have received financial support primarily from within the region that has been instrumental in supporting social cohesion. The Fund should stand ready to upscale technical support on policy priorities once domestic stability is restored and to support reconstruction efforts where needed as soon as possible. “We call for greater flexibility in the design of programmmes that take account of sociopolitical realities” Al Tayer said.
Lower oil prices have delivered less of a boost to global activity than had been anticipated. The muted positive response reflects the extended weakness in global activity reinforced by expenditure cuts in oil-exporting countries that had previously used available buffers as well as reduced investments in energy and mining sectors worldwide. The ongoing transition away from fossil fuels reinforces the need for oil exporters including in the Middle East region to consider further spending restraint and expanding non-oil revenue within a well articulated medium term fiscal consolidation plan.
‘We look forward to further depending of the Fund’s analytical work on the impact of protracted commodity price declines and potential for diversification.”
The Group commended China for the remarkable progress in achieved in rebalancing the economy and welcomed the inclusion of the renminbi in the SDR basket which the group said is a testimony to China’s prominent role in the world economy.
The Peninsula
High-level Qatari delegationattends IMF & WB meeting
DOHA: A Qatari delegation led by H E Ali Sherif Al Emadi Minister of Finance is participating in the ongoing annual Spring Meetings of the International Monetary Fund (IMF) and World Bank Group (WBG) in Washington.
The delegation which also includes H E Sheikh Abdullah bin Mohammed bin Saud Al Thani CEO of Qatar Investment Authority and H E Sheikh Fahd bin Faisal Al Thani Deputy Governor of Qatar Central Bank will participate in discussions on the latest developments in the global economy.
The Qatari delegation will hold a number of meetings with top officials of the International Monetary Fund and WBG in addition to bilateral talks with delegations from other participating countries. It will participate in the IMF’s special meeting on the Middle East and North Africa region.
There will also be talks with senior US officials in the banking and financial sectors along with the chairs and CEOs of leading multinational companies.The Peninsula