The annual meetings of the International Monetary Fund (IMF) and the World Bank Group are set to commence today in Marrakech, Morocco, which was recently hit with a devastating earthquake, claiming the lives of thousands of people, just a month ago.
Currently, Marrakech is facing an unprecedented level of congestion following the completion of all logistical preparations to ensure the success of the upcoming event. Approximately 14,000 participants are expected to take part in this gathering.
According to sources from the organizers, the setup of a dedicated venue to host this international event has taken a year of preparation. The Moroccan Government places significant reliance on this meeting as a means to boost its tourism sector, which holds a significant share in the local economy’s output.
At the conclusion of last year, the Ministry of Tourism reported that the tourism sector generated $9.6 billion in revenue. Furthermore, Morocco’s economy experienced a growth rate of 2.3 percent in the second quarter of this year.
Read more: IMF, World Bank meetings to kick off in earthquake-hit Marrakech
Sense of optimism
In contrast to the previous year, there is a prevailing sense of optimism surrounding this year’s meetings. However, IMF Managing Director Kristalina Georgieva advised caution against excessive optimism. Inflation has reached unprecedented levels but has begun to decrease in several countries, particularly in the United States (U.S.) and the European Union (E.U.). Furthermore, China is expected to surpass the initially projected growth rates.
Undoubtedly, the agenda for the discussions is extensive, focusing on international recovery and the reform of the IMF and the World Bank, as requested by the U.S.. Key topics this year include global financial stability, addressing climate change and its impact on the global economy, and the crucial matter of securing necessary funding for affected countries. The African continent will have a strong presence, with various initiatives and proposals being put forward for discussion.
Upcoming reports
During a press conference on Tuesday, the Fund will publish its inaugural global economic outlook report, presented by Georgieva, which is anticipated to reveal a further downward revision in this year’s growth forecast. Georgieva highlighted that the global economic recovery from past shocks has been sluggish and uneven, reversing the trend of weak growth rates. The current rate of global growth remains notably low, experiencing a significant decline from the average of 3.8 percent witnessed in the two decades prior to the onset of the COVID-19 pandemic.
The upcoming press conference will unveil the second report, focusing on the economic prospects of the regional economy. Dr. Jihad Azour, the director of the Middle East and Central Asia (MECA) department at the IMF, will lead the conference, discussing the drivers of economic growth in the Middle East and North Africa (MENA). The report will highlight the unprecedented opportunities available to the 24 countries in the region to achieve inclusive growth, create high-quality jobs, and enhance responsiveness to the aspirations of their 600 million citizens.
On Wednesday, the Global Financial Stability Report is scheduled for release.
In addition, the World Bank has dedicated a capacity development session specifically to the African continent. The session will involve direct dialogue with the newly appointed World Bank President, Ajay Banga.
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