International Monetary Fund (IMF) - CC Wikimedia
WASHINGTON - 19 April 2022: The International Monetary Fund (IMF) said the GDP in the Middle East and Central Asia is expected to grow by 4.6 percent in 2022.
Countries in the Middle East, North Africa, Caucasus, and Central Asia regions are highly exposed to rising global food prices, particularly the price of wheat, which is expected to remain high throughout the year and into 2023, the IMF said in its latest World Economic Outlook report for April 2022 published on Tuesday.
In the Middle East and North Africa, spillovers from tighter global financial conditions, reduced tourism, and secondary demand spillovers will also hold back growth, especially for oil importers, according to the report.
"For oil exporters, higher fossil fuel prices may provide some offsetting gains. For example, the 2022 forecast for Saudi Arabia is revised up 2.8 percentage points, reflecting higher oil production in line with the OPEC+ (Organization of the Petroleum Exporting Countries, plus Russia and other non-OPEC oil exporters) agreement, reinforced by stronger-than-anticipated growth in the non-oil sector," read the report.
"Unresolved social tensions in some of the region's countries also act as a drag on investment and growth," it said.