Middle East ETF News up to 1 year Ago
World Bank-Sharp Deceleration Expected for Middle East and North Africa Economies in 2023
October 5, 2023--Over five million jobs lost due to economic shocks in the last three years
Growth of the economies in the Middle East and North Africa (MENA) is expected to fall sharply this year. The region's gross domestic product (GDP) is forecast to plummet to 1.9% in 2023 from 6% in 2022, due to oil production cuts amidst subdued oil prices, tight global financial conditions, and high inflation, according to the latest issue of the World Bank MENA Economic Update (MEU).
Titled "Balancing Act: Jobs and Wages in the Middle East and North Africa When Crises Hit," the report says that the decline in growth in MENA this year is expected to be more pronounced in the oil-exporting countries of the Gulf Cooperation Council (GCC). Real GDP growth in these countries is forecast at 1% in 2023, down from 7.3% in 2022 as a result of lower oil production and reduced oil prices.
In developing oil exporting countries, growth is forecast to decline from 4.3% in 2022 to 2.4% in 2023. Among the oil importing countries in MENA, the tightening of global financial conditions and high inflation continue to constrain economic activity. Growth there is projected at 3.6% in 2023, down from 4.9% in 2022. These results signal the end of the "tale of two MENAs" from 2022, in which the region's oil exporters were growing much faster than the oil importers.
IMF-Saudi Arabia's Economy Grows as it Diversifies
September 28, 2023--Sustaining growth in private non-oil investment requires maintaining the reform momentum and sound macroeconomic policies
Saudi Arabia's economy is undergoing a transformation, as it implements reforms to reduce oil dependence, diversify income sources, and enhance competitiveness. This year marks an important juncture as the midpoint of Saudi Arabia's ambitious Vision 2030 journey.
As shown in the latest IMF annual review of the country's economy, progress has been most notably reflected in non-oil growth, which has accelerated since 2021, averaging 4.8 percent in 2022. Despite lower overall growth reflecting additional oil production cuts, non-oil growth will remain close to 5 percent in 2023, spurred by strong domestic demand.
