IMF predicts 4% Middle East and North Africa growth next year

DUBAI (Reuter) –  The International Monetary Fund stated on Thursday that growth in the Middle East and North Africa region is anticipated to rebound to 4% next year, although this depends on the end of oil production curbs and the subsiding of headwinds, especially those caused by wars.

According to the IMF’s newest Regional Economic Outlook, which was released in Dubai, regional growth will continue “sluggish” at 2.1% in 2024, lower than earlier predictions due to geopolitical and macroeconomic issues.

The IMF warned that threats to the region’s outlook, particularly the Caucasus and Central Asia, “remain tilted to the downside,” and urged an acceleration of structural reforms, including in governance and labor markets, to improve medium-term development prospects.

In an interview, Jihad Azour, the IMF’s director for the Middle East and Central Asia department, stated that the MENA growth estimate for 2024 has been revised downward by 0.6% from the April report, owing primarily to the extension of the Israel-Hamas conflict and further extensions of OPEC+ voluntary oil production cuts.

Oil importers in the Middle East and North Africa continue to be subject to continuous crises and high financial demands.

“Even as these issues gradually abate, uncertainty remains high and structural gaps will likely hold back productivity growth in many economies over the forecast horizon,” according to the IMF’s research.

Since January 2024, the IMF has granted $13.4 billion in fresh funding for Middle East and Central Asian nations, including initiatives in Egypt, Jordan, and Pakistan.