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- IMF: Growth in Middle East, Central Asia to slow amid global challenges
IMF: Growth in Middle East, Central Asia to slow amid global challenges
"Economic growth in the Middle East, North Africa and Central Asia regions will slow in 2023, underlining the need to accelerate structural reforms," the International Monetary Fund (IMF) said on Wednesday per Reuters.
The IMF released its Regional Economic Outlook report early Wednesday wherein it said, “Real GDP growth in the Middle East and Central Asia is forecast to fall to 2.9% in 2023, from 5.3% last year, before improving to 3.5% in 2024.”
The report further added that Growth in the Middle East and North Africa region will slow to 3.1% in 2023, from 5.3% a year ago, and to 4.2% in the Caucasus and Central Asian states from 4.8% last year.
Together with the IMF report, Regional Director Jihad Azour said that uncertainties are high and there are a number of risks that are impacting the outlook for the region.
“Some risks are global, some are related to the risk of fragmentation, but some of it is due to the fact that a certain number of countries have a high level of debt,” added IMF’s Azour.
IMF’s Azour also mentioned that government-led reforms and the growth of private investment in new sectors will help support non-oil economic growth in Saudi Arabia amid an expected sharp slowdown in overall growth this year.
More statements from IMF
Tight monetary and fiscal policies across the region and tight financial conditions ‘call for accelerating structural reforms to bolster potential growth and enhance resilience.’
Growth in Egypt is forecast to slow to 3.7% in 2023 from 6.6% in 2022 amid economic woes that led it to seek a $3 billion, 46-month financial support package from the IMF.
Also read: IMF raises Asia's economic forecast on China recovery, warns of risks
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