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Sunday , September 22 2019

Global economy still grim, carries several risks

CBK Governor calls on all GCC central banks to ‘consolidate’ their endeavors

Governor of the Central Bank of Kuwait, Dr Mohammed Al-Hashel

KUWAIT CITY, Oct 21, (KUNA): Governor of the Central Bank of Kuwait Dr Mohammad Al-Hashel has called upon all the central banks in the member states of Gulf Cooperation Council to consolidate and collaborate their endeavors among them amid the current global condition, which is witnessing a migration of capital from growing markets and currency volatility.

Dr Al-Hashel said this in his opening speech during the 71st Meeting of the Committee of GCC Governors of Monetary Authorities and Central Banks, which is currently held in Kuwait. He explained that the global monetary situation is still laden with tension and polarization.

The horizon of global economy is still grim and carries several risks, especially with the increasing echo of a trade and financial war which warns about the possibility of an economic war in which everyone will be at a loss.

Dr Al-Hashel indicated that the meeting came at a time when the global economy is undergoing the recovery process, the advanced economies are achieving relative increase in the growth rate and exceeding the period of stagnation, there is a noticeable drop in the rate of unemployment and improvement in the oil prices. He said, “The central banks of major global economies have continued to retract from their unconventional monetary policies in different manner and rate. This retraction has led to what the world is currently suffering from in terms of capital migration from the growing markets, currency volatility, drop in the asset value in those markets, increased global imbalances and a major increase in the debt size”.

Dr Hashel affirmed that the Gulf countries are not exempted from the economic and geopolitical challenges especially amid dependence on one revenue source, which is subject to market fluctuation, political transformation and turn of events despite the sense of optimism which requires not to be reliant and sagacious.

He indicated, “The objective of the meeting is to consolidate and collaborate endeavors among the GCC countries for agreeing on the best and suitable means for preserving economy stability of the GCC member states, and to pave way in a guaranteed manner towards achieving sustainable prosperity for its nations especially since the GCC countries has the determination, knowledge and natural resources that would assist in facing up to most difficulties”.

In a similar speech, the Secretary General of Gulf Cooperation Council (GCC) Dr Abdullatif Al-Zayani expressed hope that the current meeting will produce constructive decisions that will enhance objective efforts and endeavors towards promoting economic and financial stability in the Gulf countries.

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