Cairo

Source: Al-Wafd newspaper

Dr. Ali Mohamed Al-Khouri

As 2025 approaches, discussions are escalating among experts and policymakers about economic resilience strategies in light of the increasing challenges facing the global economy. By the end of 2024, global economic growth slowed to around 2.4%, the lowest rate recorded in decades, reflecting a marked contraction in economic activity and an increase in the fragility of national economies, especially in developing countries, which achieved only 3.9% growth. These indicators, taken together, pose huge challenges for governments to deal with rapid changes.

Low-income countries are reported to be the most affected in 2024, with growth rates falling to 5.5%, compared to earlier more positive forecasts. According to the World Bank, successive crises, from the pandemic to economic and political crises, have worsened the living conditions of around 70 million people. These shifts have exacerbated economic and social inequalities, poverty and marginalization, and put the future of many countries at risk.

Developing countries face great difficulty in confronting the growing financial and social crises, despite adopting more comprehensive economic policies directed towards developing human resources and infrastructure. However, the problem lies in the small percentage of government allocations for these strategies. Economic reports indicate that increasing spending on basic sectors such as education and health should not be less than 3% of GDP to achieve an economic recovery that can improve living standards and strengthen countries’ ability to withstand economic shocks.

Adding to the complexity of the economic crisis are geopolitical turmoil, as conflicts no longer just disrupt trade routes, but also extend to destabilizing markets and raising the prices of basic commodities such as energy and food. The International Monetary Fund estimates that recent tensions have caused commodity prices to rise by 15% to 25%, putting additional pressure on economically fragile countries, with purchasing power declining and the cost of living rising in developing countries and families struggling to meet their basic needs.

These data emphasize the need to find a new ground for trade cooperation and economic integration between countries to overcome global economic crises. This ground must provide a new approach, such as reducing trade barriers and encouraging economic partnerships to implement joint projects and achieve mutual benefits to achieve sustainable economic growth. Global reports estimate that reducing customs duties by 10% can support developing countries’ GDP growth by up to 1.5%. This type of strategy may be an important step towards strengthening productive capacities and creating new job opportunities in national markets. In the same context, countries must work to secure and protect their local markets in parallel with facilitating the movement of goods and services across borders to reduce the impact of global tensions on the local economy.

It is important to realize that sustainable economic growth cannot be achieved without investing in digitization and developing technological infrastructure. Digital transformation is an urgent necessity in the face of rapid economic changes. Studies confirm that countries that invest in digitization can achieve growth rates of up to 2% higher than their counterparts. This investment enhances the resilience of national economies to shocks and gives them a competitive advantage on the global level, and provides individuals and institutions with new opportunities to adapt to economic changes.

In conclusion, this brief analysis shows that the global economy will continue to face unprecedented challenges, requiring decision-makers to adopt strategies that combine emergency policies and measures with a strategic vision for long-term structural initiatives. This vision must be based on achieving a delicate balance between short-term policies aimed at mitigating current crises, and structural initiatives that seek to establish a more sustainable and resilient economy. This balance will be the cornerstone for building the foundations of economic resilience and establishing new economic rules that enhance countries’ ability to confront accelerating global challenges.