IMF's Georgieva says she's confident on global economic outlook despite uncertainties

Dubai: The managing director of the International Monetary Fund IMF ), Kristalina Georgieva , said on Sunday she was confident about the economic outlook despite uncertainties around war and geopolitics as the global economy has remained resilient.In a speech at the World Governments Summit in Dubai, Georgieva said the IMF would publish a paper on Monday that shows phasing out explicit energy subsidies could save $336 billion in the Middle East , equivalent to the economies of Iraq and Libya combined.She added that in addition to savings, eliminating regressive energy subsidies "discourages pollution, and helps improve social spending," in a copy of the speech published on the IMF website.In its latest regional economic update published last month, the IMF revised its GDP growth forecast for the Middle East and North Africa region downwards to 2.9% this year, due in part to short term oil production cuts. "While uncertainties are still high, we can be a bit more confident about the economic outlook, because the global economy has been surprisingly resilient," she said in the speech.Speaking about the conflict in Gaza, Georgieva warned of widening consequences. "This exceptionally uncertain moment compounds the challenges of economies that are still recovering from previous shocks. And further widening of the conflict would aggravate the economic harm," she said. (You can now subscribe to our Economic Times WhatsApp channel

February 11, 2024 14:01 UTC


Are PLI beneficiaries importing solar panels from China violating the law of the land? Calls for an investigation

ToShri Bhupinder Singh BhallaSecretary (MNRE)Govt of IndiaDear Shri Bhalla,I understand that the government has given subsidies to solar companies under the somewhat contentious Production Linked Incentive (PLI) scheme. Why should profit-earning private companies get the benefit of subsidies, involving scarce public funds, for importing solar panels and assembling them domestically, when funds diverted for such subsidies are more critically needed for investment in public health, education, maintaining food security and supporting employment schemes? In this connection, I invite your attention to two distressing news reports (https://www.taxscan.in/dri-launches-investigation-against-6-solar-companies-on-rs-1900-crore-customs-import-duty-evasion-allegation/373732/ & https://www.livemint.com/companies/news/chinese-vendors-dominate-supply-chain-of-indian-solar-pli-scheme-winners-report-11707365855802.html) that suggest that some private companies importing solar panels from China are being investigated by the DRI for possible false declarations and money laundering and those involved in such acts of malfeasance may be also beneficiaries of the PLI scheme. I request your Ministry to get such instances thoroughly investigated by the DRI and the other investigating agencies and bring the culprits to book, as public funds cannot be allowed to be misused in the guise of the PLI scheme. Regards,Yours sincerely,E A S SarmaFormer Secretary to the Government of IndiaVisakhapatnam

Source:Mint

February 11, 2024 11:55 UTC


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