The International Monetary Fund (IMF) has stated that economic growth in the Middle East, North Africa, and Central Asia will slow down this year, emphasizing the need for acceleration of structural reforms, according to Reuters.
The forecast predicts that the real GDP growth in the Middle East and Central Asia will decrease from 5.3% last year to 2.9% in 2023, and then increase to 3.5% in 2024.
Growth in the Middle East and North Africa region will slow down from 5.3% a year ago to 3.1% in 2023, and in the Caucasian and Central Asian countries from 4.8% last year to 4.2%.
Despite high uncertainty, there are several risks that affect the region’s prospects, as stated by the IMF Regional Director, Jihad Azour. Some of these risks are global, some are linked to the risk of fragmentation, but some are associated with high debt levels in some countries.
The IMF report stated that the tight monetary and fiscal policies in the region and the harsh financial conditions require acceleration of structural reforms to support growth and stability.
In particular, Egypt’s GDP growth will slow down from 6.6% in 2022 to 3.7% in 2023 due to economic issues.