Jeddah, Kingdom of Saudi Arabia, 6 August 2023 - The Islamic Development Bank Institute (IsDBI) organized a hybrid webinar on 6th August 2023 titled "A Recession Averted? Economic and Business Outlook for 2024 and Beyond."

This engaging hybrid event offered in-person attendance and featured Ms. Pat Thaker, Editorial and Regional Director for the Middle East and Africa (MEA) region at the Economist Intelligence Unit (EIU), as the main speaker.

Dr. Areef Suleman, Director of Economic Research and Statistics at IsDBI, moderated the discussion on economic prospects, challenges, top global risks, and opportunities in the Middle East, Asia, and other regions. Despite obstacles such as the Ukraine war and high inflation, the global economy has showcased remarkable resilience, with a projected growth rate of 2.1% for the current year.

The impact of the ongoing war includes escalated commodity prices, disruptions in supply chains, and manipulation of energy supplies by Russia. These effects are expected to persist throughout 2023, impacting energy-intensive industries in Germany and central Europe and leading to a cost-of-living crisis in specific regions. In the United States, annual growth is predicted to slow to 1% due to unsustainable consumer spending, high inflation, and rising interest rates. On the other hand, China has experienced a robust rebound in consumer activity, yet it faces domestic challenges.

Ms. Thaker provided valuable insights into the global economy during her presentation. She emphasized the global economy's resilience, projecting its ability to avoid a recession and gain momentum in 2024. Ms. Thaker specifically addressed the peaking of inflation and anticipated policy of interest rate reductions by mid-2024, highlighting the economy's resilience. She also discussed the challenges posed by high and persistent energy and non-energy commodity prices due to demand and supply constraints.

The EIU outlook on Asia's role in driving economic growth was optimistic, emphasizing the importance of closely monitoring supply chain dynamics considering emerging geopolitical blocks and potential disruptions. She also highlighted the significant potential of Artificial Intelligence (AI) across various sectors, acknowledging its disruptive nature as companies develop solutions to automate processes and predict customer demands. Importantly, Ms. Thaker noted that while job displacement concerns may exist, AI primarily enhances efficiency and speed in operations.

Dr. Sami Al Suwailem, Acting Director General of IsDB Institute and Chief Economist of IsDB Group, contributed to the discussion, especially on the challenge of monetary policy and interest rate reduction potential in the middle of next year. A lively question-answer session explored the outlook of Africa and Asia in detail.

The webinar also explored the opportunities and challenges related to ESG considerations, including expanding renewable energy.