The International Monetary Fund called on policymakers to focus on three priorities to chart a global economic recovery in 2022.
These include broader efforts to fight the economic consequences of Covid-19, the calibration of monetary tightening to suit the specific circumstances of each country and a shift in focus to fiscal sustainability, said the Washington-based lender.
Global economic recovery continues but its pace has moderated amid high uncertainty and rising risks since the fund released its last World Economic Outlook projections in January, IMF chief Kristalina Georgieva said in a blog post accompanying a report on Wednesday.
“Economic indicators have continued to point to weaker growth momentum due to the Omicron variant and persistent supply chain disruptions. Inflation readings have been higher than expected in many economies, financial markets remain volatile and geopolitical tensions have sharply increased. That is why we need strong international co-operation and extraordinary agility,” Ms Georgieva said.
Economic indicators have continued to point to weaker growth momentum due to the Omicron variant and persistent supply chain disruptions
Kristalina Georgieva,
IMF chief
In January, the fund revised its global economic growth forecast for 2022 to 4.4 per cent, half a percentage point lower than its estimate in October and below last year's estimated 5.9 per cent expansion.
The global economy entered 2022 in a weaker-than-anticipated position. The rapid spread of the Omicron coronavirus variant led to financial market volatility at the end of last year.
Supply disruptions have continued to weigh on activity and inflation has been higher than anticipated.
The 0.5 percentage point revision for 2022’s economic output largely reflects the forecast markdowns in the US and China, the world’s two largest economies, the IMF said.
Cumulative global output losses from the pandemic are estimated at about $13.8 trillion through to 2024, Ms Georgieva said.
“Our best defence is to move from a singular focus on vaccines to ensuring each country has equitable access to a comprehensive Covid-19 toolkit with vaccines, tests and treatments” she said.
“Keeping these tools updated as the virus evolves will require ongoing investments in medical research, disease surveillance and health systems that reach the last mile into every community.”
The IMF called for upfront financing worth $23.4 billion to close the funding gap in the World Health Organisation’s Access to Covid Tools (ACT) Accelerator, the partnership set up to help the global community gain the tools to tackle the virus.
Enhanced co-ordination between G20 finance and health ministries is essential to increasing resilience — both to potential new coronavirus strains and future pandemics that could pose systemic risks, the lender said.
Citing the “profound disruptions” to businesses, labour markets and the $17tn learning loss suffered by pupils and students worldwide, the IMF said ending the pandemic would help to address the scars from “economic long-Covid".
“Strong policy action is needed. Scaling up social spending, reskilling programmes, remedial training for teachers and tutoring for students will help economies get back on track and build resilience to future health and economic challenges,” the IMF chief said.
Although inflation pressures have been building in many countries, resulting in calls for a withdrawal of monetary accommodation, it is important to calibrate policies to country circumstances, the IMF said.
Clear communication of any policy shift is essential to protect financial stability at home and abroad, the lender said.
“If negative real interest rates in most G20 countries tighten suddenly, emerging and developing countries must be ready for potential capital flow reversals,” Ms Georgieva said.
“To prepare for this, borrowers should extend debt maturities where feasible now, while containing a further build-up of foreign currency debts.”
The IMF also urged countries to carefully adjust their fiscal policies as they emerge from the pandemic.
Extraordinary fiscal measures pushed global debt levels up. The year 2020 marked the largest one-year debt surge since the Second World War, with global debt — both public and private — rising to $226tn.
“We estimate that about 60 per cent of low-income countries are in or at high risk of debt distress, double 2015 levels. These and many other economies will need more domestic revenue mobilisation, more grants and concessional financing, and more help to deal with debt immediately,” Ms Georgieva said.
She called for a reinvigorated G-20 common framework for debt treatment. That includes offering a moratorium on debt service payments during negotiations under the framework and making the initiative available to a wider range of highly indebted countries.
“We encourage channelling of new special drawing rights of $650bn through our poverty reduction and growth trust, which provides concessional financing to low-income countries, and the new Resilience and Sustainability Trust,” Ms Georgieva said.
“With its cheaper rates and longer maturities, the RST could fund climate, pandemic preparedness and digitalisation policies that would improve macroeconomic stability for decades to come.”
SDRs are an international reserve asset created by the IMF to supplement the official reserves of its member countries. They are not a currency, but rather a potential claim on the freely usable currencies of IMF members that can boost a country’s available liquidity.
A basket of currencies that includes the US dollar, euro, Chinese yuan, Japanese yen and the British pound defines SDRs, which are distributed to countries in proportion to their quota of shares in the IMF.
Batti Gul Meter Chalu
Producers: KRTI Productions, T-Series
Director: Sree Narayan Singh
Cast: Shahid Kapoor, Shraddha Kapoor, Divyenndu Sharma, Yami Gautam
Rating: 2/5
MAIN CARD
Bantamweight 56.4kg
Abrorbek Madiminbekov v Mehdi El Jamari
Super heavyweight 94 kg
Adnan Mohammad v Mohammed Ajaraam
Lightweight 60kg
Zakaria Eljamari v Faridoon Alik Zai
Light heavyweight 81.4kg
Mahmood Amin v Taha Marrouni
Light welterweight 64.5kg
Siyovush Gulmamadov v Nouredine Samir
Light heavyweight 81.4kg
Ilyass Habibali v Haroun Baka
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Brief scoreline:
Tottenham 1
Son 78'
Manchester City 0
Western Region Asia Cup Qualifier
Results
UAE beat Saudi Arabia by 12 runs
Kuwait beat Iran by eight wickets
Oman beat Maldives by 10 wickets
Bahrain beat Qatar by six wickets
Semi-finals
UAE v Qatar
Bahrain v Kuwait
UAE currency: the story behind the money in your pockets
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Seven tips from Emirates NBD
1. Never respond to e-mails, calls or messages asking for account, card or internet banking details
2. Never store a card PIN (personal identification number) in your mobile or in your wallet
3. Ensure online shopping websites are secure and verified before providing card details
4. Change passwords periodically as a precautionary measure
5. Never share authentication data such as passwords, card PINs and OTPs (one-time passwords) with third parties
6. Track bank notifications regarding transaction discrepancies
7. Report lost or stolen debit and credit cards immediately
House-hunting
Top 10 locations for inquiries from US house hunters, according to Rightmove
- Edinburgh, Scotland
- Westminster, London
- Camden, London
- Glasgow, Scotland
- Islington, London
- Kensington and Chelsea, London
- Highlands, Scotland
- Argyll and Bute, Scotland
- Fife, Scotland
- Tower Hamlets, London
Turkish Ladies
Various artists, Sony Music Turkey
Sugary teas and iced coffees
The tax authority is yet to release a list of the taxed products, but it appears likely that sugary iced teas and cold coffees will be hit.
For instance, the non-fizzy drink AriZona Iced Tea contains 65 grams of sugar – about 16 teaspoons – per 680ml can. The average can costs about Dh6, which would rise to Dh9.
Cold coffee brands are likely to be hit too. Drinks such as Starbucks Bottled Mocha Frappuccino contain 31g of sugar in 270ml, while Nescafe Mocha in a can contains 15.6g of sugar in a 240ml can.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
The Lowdown
Kesari
Rating: 2.5/5 stars
Produced by: Dharma Productions, Azure Entertainment
Directed by: Anubhav Singh
Cast: Akshay Kumar, Parineeti Chopra
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
How%20champions%20are%20made
%3Cp%3E%0D%3Cstrong%3EDiet%3C%2Fstrong%3E%20%0D%3Cbr%3E7am%20-%20Protein%20shake%20with%20oats%20and%20fruits%0D%3Cbr%3E10am%20-%205-6%20egg%20whites%0D%3Cbr%3E1pm%20-%20White%20rice%20or%20chapati%20(Indian%20bread)%20with%20chicken%0D%3Cbr%3E4pm%20-%20Dry%20fruits%20%0D%3Cbr%3E7.30pm%20-%20Pre%20workout%20meal%20%E2%80%93%20grilled%20fish%20or%20chicken%20with%20veggies%20and%20fruits%0D%3Cbr%3E8.30pm%20to%20midnight%20workout%0D%3Cbr%3E12.30am%20%E2%80%93%20Protein%20shake%20%0D%3Cbr%3E%3Cstrong%3ETotal%20intake%3A%3C%2Fstrong%3E%204000-4500%20calories%20%0D%3Cbr%3E%3Cstrong%3ESaidu%E2%80%99s%20weight%3A%3C%2Fstrong%3E%20110%20kg%0D%3Cbr%3E%3Cstrong%3EStats%3A%3C%2Fstrong%3E%20Biceps%2019%20inches.%20Forearms%2018%20inches%3C%2Fp%3E%0A
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Key recommendations
- Fewer criminals put behind bars and more to serve sentences in the community, with short sentences scrapped and many inmates released earlier.
- Greater use of curfews and exclusion zones to deliver tougher supervision than ever on criminals.
- Explore wider powers for judges to punish offenders by blocking them from attending football matches, banning them from driving or travelling abroad through an expansion of ‘ancillary orders’.
- More Intensive Supervision Courts to tackle the root causes of crime such as alcohol and drug abuse – forcing repeat offenders to take part in tough treatment programmes or face prison.
Sheer grandeur
The Owo building is 14 storeys high, seven of which are below ground, with the 30,000 square feet of amenities located subterranean, including a 16-seat private cinema, seven lounges, a gym, games room, treatment suites and bicycle storage.
A clear distinction between the residences and the Raffles hotel with the amenities operated separately.
