Mena economies set for fastest expansion since 2016 but growth is uneven, World Bank says

Middle East and North Africa economies are set to expand at their fastest pace since 2016, but growth will be uneven as oil-importing countries continue to overcome the impact of the pandemic and the shock of soaring energy and food prices exacerbated by the outbreak of the Ukraine war, coupled with rising interest rates, according to the World Bank.

Mena economies are projected to grow 5.5 per cent this year and a slower rate of 3.5 per cent in 2023, the Washington-based lender said in its latest economic update.

Oil-exporting countries of the region are benefiting from high hydrocarbon prices, but oil-importing nations are vulnerable to shifting market dynamics, the bank said.

GCC economies are projected to grow 6.9 per cent in 2022, driven by high oil prices, as well as higher growth rates in non-oil sectors. Developing oil exporters are forecast to grow at lower levels expanding at 4.1 per cent this year and slow to 2.7 per cent in 2023.

While oil prices have come down from nearly $140 in March following the start of the Ukraine war, they are nearly double what they were at the start of 2019. Natural gas prices have increased more than fourfold, while food and fertiliser prices also remain high.

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