2023-05-03 10:18:45
Wednesday, May 3, 2023 – 2:17 PM
DUBAI, May 3 / WAM / The International Monetary Fund expects the annual real gross domestic product (GDP) of the Gulf Cooperation Council countries to grow by 2.9 percent in 2023, rising to 3.3 percent in 2024.
The Fund stated, during a press conference at the Dubai International Financial Center to launch the Regional Economic Outlook report for the Middle East and Central Asia for May 2023, that the real “non-oil” GDP of the GCC countries is expected to grow by 4.2 percent in 2023 and 3. 9 percent in 2024.
The International Monetary Fund expected that the current account balance in the GCC countries would reach 8.6 percent this year and 6.5 percent next year, while inflation rates are expected to drop to 2.9 percent in 2023 and 2.3 percent in 2024. .
The International Monetary Fund estimated real GDP growth for the Middle East and North Africa region at 3.1 percent in 2023, to rise to 3.4 percent in 2024, while real non-oil GDP growth in the Middle East and North Africa region is expected to grow. By 3.6 percent in 2023 and 3.7 percent in 2024.
The International Monetary Fund stated that the expected growth of the economies of the oil-exporting countries in the Middle East and North Africa region is estimated at 3.1 percent in 2023 and 3 percent in 2024, with the non-oil growth rate reaching 3.7 percent in 2023 and 3.5 percent in 2024. This indicates the continuation of the positive momentum in the retail and services sectors in the UAE, Kuwait and Saudi Arabia due to the abundance of liquidity and the acceleration of private investment.
The fund revealed that the growth in the Middle East and North Africa region, estimated at 5.3 percent for the year 2022, was higher than the expectations issued by the fund, despite a series of unexpected global events, which reflects the strong domestic demand amid the recovery of oil production.
The fund pointed to some economic challenges, which include the potential instability of the financial sector in advanced economies, the continued decline in the global financial situation for a longer period, and the return of global price pressures, noting that in the wake of the recent fluctuations in global financial markets, financial markets in the region moved in parallel with global trends. With highly indebted countries affected the most.
Jihad Azour, Director of the Middle East and Central Asia Department at the International Monetary Fund, said: “As uncertainty persists, the implications become more complex, and achieving the right balance in monetary policy becomes critical. Monetary policy should focus on maintaining or restoring price stability, taking into account Financial stability risks. Debt sustainability should also be ensured, and financial safety margins should be built with targeted and temporary support to protect vulnerable groups. At the same time, structural reforms should be accelerated to enhance growth opportunities, improve the resilience and inclusiveness of economies, and expand social safety nets.
Azour added: “The volume of new financing provided by the International Monetary Fund to countries in the Middle East and North Africa region since March 2020 has reached $25 billion, including recent loans to Egypt, Mauritania and Morocco – and also allocated $42 billion in special drawing rights to support reserve assets in the region.” The IMF has also strengthened its presence on the ground by reopening the Regional Technical Assistance Center for the Middle East, and establishing a new regional office in Riyadh, which strengthens our partnerships with the region.The annual meeting of the World Bank and the International Monetary Fund in Marrakech next October will provide a platform for wide-ranging discussions On the challenges of financial policies in the region and the world.
Reda Abdel Nour / Ramy Samih
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