Al-Falih: Global economy faces many challenges in 2023

Minister of Investment Eng. Khalid Bin Abdulaziz Al-Falih stressed that the future of the global economy in 2023 is uncertain, due to high inflation and low purchasing power, as trade policies have become unpredictable due to many factors such as high energy prices, climate change, and others.

Al-Falih, in a session on the new economic situation within the sessions of the Future Investment Initiative (FII6), held in Riyadh under the slogan "Investing in Humanity — Enabling a New Global Order", questioned how current governments can succeed and adapt in these difficult times.

"There are many challenges and accelerating historical damages. When we talk about the long-term, it is accelerating and there is a kind of transformation that may cause some difficulties, and at the same time provide more opportunities," the minister added.

Concerning the transformation in trade and supply chains, Al-Falih said that if the matter is placed in the context of globalization, it will continue to persist and expose countries, companies, and individuals to the stage of guarantee, and each country will spend from its gross domestic product on many different industries.

He said: "I spoke with the Finnish Minister of Investment about investing in energy, renewable energy, and infrastructure, and we reiterated that there are several issues that are dominated by economic transformation, high inflation, and high-interest rates, which will lead to reduced growth and income, and we must focus on growth that will become slower.

"However, there are many opportunities at the level of technology and the level of investment in the new global order."

The Minister stressed that the Kingdom's Vision 2030 was designed for the future world which we will endure 10 or 15 years from now. "If we want to know the concept of a proactive view, let us go back to 2016, and what Crown Prince Mohammed Bin Salman, prime minister, did, and how he plans to face what we are experiencing today and in the near future," he said.

Meanwhile, the Greek Minister of Development and Investment Adonis Georgiadis highlighted during the session the constant partnership between the Saudi and Greek governments, adding that the two countries have a common vision, while the Kingdom is distinguished by its Vision 2030 that works to realize several achievements in various fields.

During the session, the Greek minister stressed that the cessation of the global conflict would return things to normal with full readiness for any changes that might occur, expressing at the same time his happiness with the announcement by the Saudi and Greek governments several months ago to work on achieving power interconnection with Europe through his country.

The session also touched upon that over the past four years, and in light of the "coronavirus" pandemic, China and Hong Kong were able to fully communicate with the outside, due to their policy of high flexibility coupled with China's ambition to achieve a 60% reduction in carbon emissions by 2030, which is part of its plan to eliminate carbon emissions by 2060, to transition to a green economy that requires a lot of financing.

Concerning the challenges, especially the climate, Hong Kong has proven that as a financial center it plays a role not only in China but also in its surrounding, hence, we must enter the process of transition to a green economy and improve standards, infrastructure, and economic structures to increase the financing process. — SPA