Lagarde Welcomes GCC Countries Economic Performance

[ronscarpa]

IMF Managing Director Christine Lagarde Welcomes GCC Countries Strong Economic Performance, Identifies Key Reforms to Sustain Growth

 

Press Release No. 14/485

October 25, 2014

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today at the conclusion of a meeting in Kuwait with the finance ministers and central bank governors of the Gulf Cooperation Council (GCC)¹ and the inauguration of the IMF-Middle East Center for Economics and Finance.

“I am grateful for the opportunity to meet with the finance ministers and central bank governors of the GCC. At a time of continuing challenges in the global economy, forums such as this are important to provide a platform for policymakers to share views and come together to solve problems in a cooperative way.

“I value our cooperation with the GCC. The IMF-Middle East Center for Economics and Finance, which I inaugurated today with H.E. Minister Al-Saleh, is an outstanding example of how the IMF and the GCC countries can work together to achieve their mutual goals. With the support of the Kuwaiti government, this Center is well-established as a premier location for economics training for government officials and it has now provided training to more than 3,600 officials from the 22 countries of the Arab League The training being provided through this center will help us build a brighter future together.

“The GCC economies have been amongst the best performing in the world in recent years. The near-term outlook is positive, with growth of about 4½ percent projected in 2014–15. Particularly, growth in the non-oil sector is expected to remain strong at about 6 percent, driven by large investments in infrastructure and private sector confidence.

“Oil prices have fallen by about 25 percent since the summer, and this will affect fiscal and external balances in the region. While the substantial fiscal buffers that have been built-up in most countries over the past decade will allow governments to maintain spending plans in the near-term, in almost all GCC countries it increases the urgency for fiscal consolidation in the medium-term.

“There is scope to strengthen policy frameworks in the GCC to support economic management. On the fiscal side, this could involve reforms to the annual budget process and the introduction of a medium-term budget framework. Regarding macroprudential policies, the introduction of a formal macroprudential policy framework would clarify responsibilities and coordination among regulators.

“The future success of the GCC economies will be closely tied to ongoing efforts to boost the employment of nationals in the private sector and to increase economic diversification. Many policies are being implemented to achieve these objectives, and important progress is being made. Nevertheless, getting the economic incentives right so as to encourage workers to seek employment in the private sector and firms to produce in exported-oriented sectors is a key missing element of policies to date.

“I thank H.E. Anas Khalid Al-Saleh, Minister of Finance for Kuwait, for chairing the GCC meeting and for his generous hospitality. I also thank Dr. Abdul Latif bin Rashid Al-Zayani, the GCC Secretary General.”

¹ The GCC is comprised of Bahrain, Kuwait, Oman, Saudi Arabia, Qatar, and the United Arab Emirates.

 

http://www.imf.org/external/np/sec/pr/2014/pr14485.htm

 

[Laid Back]

GCC Gulf cooperation countries

Bahrain - or Kingdom of Bahrain

Kuwait

Oman - or Sultanate of Oman

Qatar

Saudi Arabia - or Kingdom of Saudi Arabia (KSA)

UAE - United Arab Emirates

Go Iraq

[TrinityeXchange]

“I thank H.E. Anas Khalid Al-Saleh, Minister of Finance for Kuwait, for chairing the GCC meeting and for his generous hospitality. I also thank Dr. Abdul Latif bin Rashid Al-Zayani, the GCC Secretary General.”

¹ The GCC is comprised of Bahrain, Kuwait, Oman, Saudi Arabia, Qatar, and the United Arab Emirates.

 

http://www.imf.org/external/np/sec/pr/2014/pr14485.htm

Too bad Iraq is not a member of the GCC

[yota691]

Lagarde called for the hedge by adjusting budgets

Kuwaiti Finance Minister: Gulf demands the implementation of strategies to face challenges

Fadia Zoubi

 

 

 

 

 

Christine Lagarde and Anas Saleh Muftthin business meeting

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    Christine Lagarde and Anas Saleh Muftthin business meeting
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    Lagarde during her dumping
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    Kuwaiti Finance Minister Anas Saleh
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    Participants in the joint meeting between the Committee on Financial and Economic Cooperation at the level of ministers of finance and economy, the Gulf and the Committee of Governors of Monetary Institutions and Central Banks Gulf
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    Lagarde stressed the need for rationalization of expenditure and raising the efficiency of human resources

 

 

 

Alerted the Kuwaiti Finance Minister Anas Saleh to the necessity of increasing concern for the implementation of plans and strategies to confront internal challenges and complete the process of reform and development in the GCC countries, but stressed at the same time that the strength of the financial conditions of the GCC countries have contributed effectively in the absorption of many external shocks and the implications of the financial crisis the last.

Fadia Zoubi of Kuwait , said Kuwaiti Finance Minister Anas Saleh, in a speech in which today acts between the Committee on Financial and Economic Cooperation opened a joint meeting at the level of ministers of finance and economy of the Gulf Cooperation Council (GCC), and the Committee of Governors of Monetary Institutions and Central Banks Gulf, in the presence of the Director General of the International Monetary Fund Christine Lagarde, said that the strength of the financial conditions of the GCC countries have contributed effectively to enhance the capabilities of their economies in the face of challenges and absorption of several external shocks, especially the implications of the recent financial crisis.

Gulf economic growth
and said the outlook appears good continuation of the positive trends in the rates of economic growth in the GCC in general. He predicted that the average rate of economic growth of the GCC ranges at 4.5 per cent of 2014 and 2015 ". But he said that these expectations shrouded some of the risks and caveats, especially amid regional and international developments accelerating, especially on developments in crude oil prices, which began to cast a shadow on the financial situation public in the GCC countries in general, and on economic reform and public spending, in particular the investment programs.

He added that it is pushing to intensify efforts to continue the comprehensive economic reform process, by taking measures to address some of the structural imbalances, which signs of aggravation in the economies of the GCC countries have emerged.

Regional and international repercussions
Minister Saleh stressed the importance of this meeting in light of regional and international circumstances which imposes more challenges, and require a comprehensive vision to address the dimensions and implications, noting that the world's governments and international financial institutions Telmust some emitting signs of optimism about the performance of the global economy, but the regions Numerical around the world have seen conflicts and disorders, coincided with the decline in oil prices in the global markets.

Indicating that the impact on the course of future expectations about the prospects for growth trends in the world economy, both at the national level or regional blocs, or on the part of international financial institutions, such as cast changes and developments overshadowed by developments on the performance of the global economy. He stressed that the momentum of these developments and regional and international developments would "impose on us an update of the mechanisms of selectors face the consequences and risks, in line with the social and economic reality of the countries in the region."

He said that this situation had to be on the Gulf Cooperation Council (GCC) to increase concern for the implementation of the plans strategies to confront internal challenges and complete the process of reform and development. He pointed out that the strength of the financial conditions of the GCC countries have contributed effectively in the absorption of many external shocks and the implications of the recent financial crisis.

Deal with financial institutions and banks
praised the good pivotal role, played by the Monetary and central banks in the GCC institutions, take measures to ensure to address the crisis at the highest level of efficiency and professionalism, as well as the essential role played by central banks in maintaining monetary stability ", where it proved Monetary institutions, central banks and GCC support for the pillars of financial stability. "

And that it comes through the pursuit of monetary agencies and central banks GCC macro hedging policies, which formed one of the important themes in the organizational, regulatory and supervisory frameworks, which contributed effectively to the reduction of systemic risk and increase the collection of the banking and financial sectors and the provision of supporting sustainable economic growth atmosphere. He stressed that these achievements "increase our determination and conviction of the importance of strengthening the independence of the central banks, so that they can play their role to the highest degree of autonomy, and thus contributing to the creation of supporting the efforts of economic reform and sustainable development atmosphere."

He explained that the fiscal consolidation of the GCC countries need to further efforts to address some of the imbalances, which may be caused, in part, from some accumulations associated with the nature of the economies of the GCC countries or structures as a result of regional and global developments unfavorable. He pointed to the importance of focusing on the achievement of fiscal discipline in the medium term, and increase overall financial flexibility, and reduce rigidities in the main clauses, particularly in relation to the rapid growth of current expenditure and major components, whether wages or salaries or item transfer payments.

He called for an emphasis on the need for comprehensive economic reform process, including financial reform in the financial and public address imbalances and diversify income sources and reduce dependence on oil revenues.

Lagarde calls to hedge
its part, held the Director General of the International Monetary Fund Christine Lagarde held a press conference at the conclusion of the meetings, which emphasized the need to make some financial and structural reforms to ensure the well-being of peoples. Stressing the need to rationalize spending, and raising the efficiency of human resources. Lagarde said that during the past two months, increased volatility of oil prices by about 25 per cent, which has increased concerns, and this is what affects the public finances and external account for the Gulf States, in spite of the existence of financial have margins, "but must control the situation in general."

And called on the GCC to the need to hedge through the promotion of economic and financial policies, by adjusting the conditions of the annual budgets, and improve governance and rationalization. And about meeting topics, she said, "we discussed what should be done to address the risks and diversify economic activity in the GCC countries, such as reducing the focus on oil revenues, and the diversification of the labor market, and focus on work in the private sector, and participation in non-traditional sectors, including export., Which requires some amendments to the the educational system and the labor market.

Changes in fiscal policy
and Lagarde spoke about the changes to be made ​​on public financial policies by setting budgets and commitment in terms of revenue and expenditure, so that sets the budget and spending plans for several years, regardless of fluctuations in oil prices.

She stressed the need to encourage the private sector to enhance competitiveness both internally and externally, and encourage them to export. It recommended the support of young people, saying: "the education system must be strong enough, and finding good financing him, to comply with the needs of the markets."

Meeting topics
witness the meeting, which is headed by Finance Minister Anas Saleh, reviewed a number of issues of common interest with the International Monetary Fund, in order to visualize the GCC around, and discuss the Fund's role in providing technical support to countries (cooperation). At the forefront of those common topics to discuss financial stability and reforms in cooperation Council (GCC) labor market to increase employment, productivity and overall prudential policy in the GCC countries and the study of the structure and the level of wages and salaries in the GCC.

The State of Kuwait has hosted yesterday the work of the 99 meeting of the Financial and Economic Cooperation of the Gulf Cooperation Council (GCC) to discuss and study the GCC joint economic action themes.

The meeting discussed the results of meetings of the Committee of Governors of Monetary institutions and central banks of the 60 and the minutes of meetings of the Customs Union Commission eighth and ninth, which includes a number of recommendations, relating to the completion of the GCC Customs Union requirements.

Also yesterday, Kuwait also hosted the 60th meeting of the Committee of Governors of Monetary and central banks of the Gulf Cooperation Council, in the presence of Governors of Monetary Institutions institutions in the GCC countries. And ensure the agenda of this meeting several topics, including the follow-up efforts of supervisory committees, and discussed developments in the fight against money laundering and terrorist financing.

[yota691]

IMF calls on Gulf states to make economic reforms

 

 

 

Call comes in light of the challenges faced by the global economy, most notably the weak growth and declines in oil prices.

Kuwait called on the Director of the International Monetary Fund Christine Lagarde said Saturday the Gulf countries to make economic reforms that enhance the strength of its economy and finances and supports the development orientations. and opened Lagarde in Kuwait today Monetary Fund Center for the economy and finance in the Middle East, in the presence of Finance Minister Anas Saleh, and finance ministers and the economy and central bank governors of the GCC. In the beginning of this month, reducing the IMF forecast the ratio of oil-exporting countries in total, including the Gulf countries, Algeria, Libya, Iraq and Iran, the growth in 2014 to 2.5%, versus 3.4% in April / April last report. For for 2015, reducing the "Fund" expectations also of 4.6% in April to 3.9%, also predicted that the economic growth of the Gulf remains high with an average of 4.5% for the years 2014 and 2015 rate. Fund warned of the fluctuation in oil prices if the weakness occurred in demand and an increase in Production of non-members in the "OPEC", especially the United States. Lagarde said in a press statement after the opening that oil prices have fallen by 25% oil during the past few months, pointing out that the Gulf states face challenges highlighted by the weak global economy growth as well as declines in oil prices . Oil prices have fallen by 25% since June last, and more than 5% over the past two weeks because of the on demand concerns, and increase the supply, and the Declaration of Saudi Arabia that it plans to defend its market share in the global oil market. He said Kuwaiti Finance Minister Anas Saleh The decline in oil prices began to cast a shadow over the financial situation in the GCC countries in general, and on economic reform and investment spending in particular programs, expected to reach the economic growth rate in the Gulf states for the years 2014 and 2015 of 4.5%. The Kuwaiti minister added: There are regional and international political challenges seriously difficulty imposed on the Gulf states to build a comprehensive and integrated economic vision. The State of Kuwait has hosted Friday work of the 99 meeting of the Committee on Financial and Economic Cooperation countries of the Gulf Cooperation Council to discuss and study the Gulf economic action common themes. As Kuwait hosted yesterday also 60 meeting of the Committee of Governors of Monetary Institutions and central banks of the Gulf Cooperation Council in the presence of Governors of Monetary Institutions in the GCC countries, and the agenda included several issues, including the follow-up efforts of the supervisory committees and discuss developments in the framework of the fight against money laundering and terrorist financing.

[ronscarpa]

Good articles YOTA (+2)...Thanks...!   

[yota691]

IMF: the displacement of 780 million dollars from the Gulf because of US monetary policy

 

      Monday   27   October   2014 | 15:03

 

 

 

 

 

A study by the International Monetary Fund showed that the total funds displaced heads for the Gulf countries amounted to about $ 780 million just since the detection of the Federal Reserve (the US central bank) in May of last year for his plan to withdraw its asset purchase program gradually, and it seems that the study of the IMF, which published confirms that international investors believe that the Gulf oil-exporting countries are better prepared to cope with a period of rising interest rates than most countries in the world, thanks to the large surpluses in the balance of the current account and public budgets and the study showed that the total outflows from bond and stock markets flows in the Gulf Cooperation Council (GCC) stood at the equivalent of Only 0.05 percent of GDP Evacuee or 3.5 percent of the under management in the period between May 2013 and July July 2014 assets, and includes the GCC six countries are Saudi Arabia, UAE Arabhaltdh, Kuwait, Qatar, Oman and Bahrain,  and comes compared with total inflows of other emerging markets amounted to $ 79 billion, equivalent to 0.35 percent of GDP and 6.1 percent of assets under management. The IMF said that the displaced flows from the Gulf states were in line at the outset to a large extent with those displaced from other emerging markets, but it has become much less since the beginning of 2014 He added, "It seems that the strength of the external sectors of the GCC ... it was an important factor explains the limited funds that came out during the second period of volatility of capital flows." It meets the US Federal Reserve board officials on 28 and 29 October to make a decision regarding the suspension of their program incentive to buy bonds .It is expected that in the end it leads to a rise in US interest rates, which could lead to more money out of emerging markets, is expected to follow the GCC Central American footsteps in raising interest rates as most of them linking its currency to the dollar