MENA region receives a modest share in Global Economic Recovery

MENA region receives a modest share in Global Economic Recovery

The Gaza Post | The News of Palestine – Cairo

In mid-2016 the global economic recovery was started, and now is gaining remarkable support with the accelerating growth in Europe, Japan, China and the US, International Monetary Fund (IMF) has revealed in a report.

Given that a number of states are not part of the global economic recovery, IMF warned of possible discontinuity of the project.

MENA countries growth was expected to drop remarkably from 5.1 percent last year to 2.2 percent in 2017.

Furthermore, a 3.2 percent rebound in MENA’s economic growth is expected to be achieved in 2018, according to the IMF.

One of the prominent factors behind some states’ delay in economic recovery is political tension, and this tension is centered in several regions including MENA, IMF pointed out in its report.

It added that if nearly 75% of world economies are growing, more than 25% are not, and this represents a burden on the global growth and a potential source of destabilizing political shocks.

Notwithstanding Libya, because its economic data is unreliable meanwhile, Djibouti is the highest growing since 2017 with up to 7 percent, followed by Morocco, Egypt, Mauritania, and Sudan.

IMF forecast that Kuwait, Yemen, and Iraq will undergo a recession in the annual growth, which reflects the impact of political tension in such countries and the effect of oil prices’ drop in Gulf markets.

Although inflation is usually a phenomenon that accompanies economic recovery, it is not the case in the MENA.

Despite its modest share in growth, it tops the list of high inflation regions according to IMF forecasts (an estimate of 7.1 percent of inflation in that region).

Source: Asharq al-Awsat

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Palestinian translator/journalist covering Palestinian and middle eastern news

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