Real GDP growth is projected to slow in the Middle East and North Africa to 2% in 2023, from 5.6% last year, according to the IMF's Regional Economic Outlook.
The report was published on the sidelines of the World Bank-IMF Annual Meetings in Marrakesh.
"Moreover, the conflict in Sudan is affecting lives and livelihoods, causing displacement of people and severe economic disruption. Economic conditions are set to improve in 2024, with growth reaching 3.4 percent, as the contraction in Sudan subsides and other growth-dampening factors, including temporary oil production cuts, dissipate."
"The MENA region is mainly driving this year’s slowdown, reflecting oil production cuts, tight macroeconomic policies, and country-specific factors. Inflation is declining, but it remains high in some countries."
"Currency depreciations, import restrictions, and recurring droughts—continue to fuel inflationary pressures in some countries, lifting average inflation across the region,” said the report.
It mentioned that monthly inflation remains well above historical levels in Egypt, and Tunisia.
"Moreover, as of July, year-over-year food inflation remains above 10 percent in Morocco and Tunisia and above 35 percent in Egypt and Pakistan, because of droughts (Morocco and Tunisia) and the lagged impact of exchange rate devaluations on import prices (Egypt and Pakistan)."
