IMF expects growth in MENAP oil importers

WASHINGTON - 31 October 2017: The International Monetary Fund (IMF) said growth in oil importers in the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region is projected to rise to 4.3 percent this year from 3.6 percent in 2016.

The upswing is expected to persist in 2018, supported by increasing domestic demand, supportive reforms, and the global uptick in growth, according to the IMF report under the theme of the economic prospects of the MENAP region.

On the fiscal front, many oil importers continue to struggle with insufficient revenue mobilization on one hand, and higher current expenditures (including public wage bills) on the other hand. This has pushed public debt to more than 50 percent of GDP in most countries.

Countries should focus on improving revenue collection and targeted spending cuts, while protecting social and growth-enhancing spending.

The economic prospects of the MENAP region remain subdued primarily because of the ongoing adjustment to low oil prices and regional conflicts, observes the IMF in its latest Regional Economic Outlook.

Countries in the region should capitalize on the current global growth upswing to place their public finances on sounder footing, accelerate job-creating reforms, and diversify their economies.