Slowdown in Economic Growth in the Middle East Attributed to Inflation

The International Monetary Fund expects the economies of the Middle East and Central Asia to slow down this year, while inflation and interest rates continue to rise, which will affect the gains made since the end of the coronavirus pandemic.

In the IMF’s Regional Economic Outlook report, this is partly attributed to higher energy costs as well as higher food prices.

“While the oil-dependent economies of the Gulf and other countries in the region have benefited from higher crude oil prices, other countries such as Pakistan have seen growth sag after last summer’s devastating and unprecedented floods or due to exacerbation of economic problems,” the report says. is reading.

“We are seeing inflation again this year, and this is the biggest issue for most countries,” Jihad Azur, director of the IMF’s Middle East and Central Asia Department, told The Associated Press. high levels of debt, the problem is that the global rise in interest rates, as well as the tightening of monetary policy, affects this.”

And IMF forecasts spoke of a slowdown in growth in the region from 5.3% last year to 3.1% this year.

Overall, the Fund expects regional inflation to reach 14.8%, unchanged from last year, as Russia’s war with Ukraine continues to put pressure on global food supplies and hurt energy markets.

The situation will be worse in Pakistan, where the IMF expects inflation there to more than double, or about 27%.

The fund warned of worsening financial conditions around the world this year due to the collapse of two US banks last March.

Source: AP

Brice Foster
With over a decade of experience, Brice Foster is an accomplished journalist and digital media expert. In addition to his Master's in Digital Media from UC Berkeley, he also holds a Bachelor's in Journalism from USC. Brice has spent the past five years writing for WS News Publishers on a variety of topics, including technology, business, and international affairs.

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