The International Monetary Fund predicted on Wednesday that the Middle East, North Africa. And Central Asia regions’ economies will grow less slowly in 2023, highlighting the need to quicken structural changes.
According to the IMF’s Regional Economic Outlook report, real GDP progress in the Middle East & Central. Asia is predicted to decline from 5.3% in 2022 to 2.9% in 2023 before increasing to 3.5% in 2024.
In 2023, growths in the Mid East & North Africa will drop to 3.1% from 5.3% last year. While in the Caucasus & Central Asian republics it will fall to 4.2% from 4.8%.
The region’s outlook is being affected by a lot of uncertainties and high levels of uncertainty. According to Jihad, regional director of the IMF.
Some concerns are global, others are associated with the danger of fragmentation. But some of it is because a particular number of countries have a high amount of debt, he said.
According to the report, the region’s tight financial conditions and tight monetary & fiscal policies “call for accelerated structural reforms to support potential growth and improve resilience.”
Egypt’s economy is predicted to suffer as a result of the requirement for an International Monetary Fund financial aid package totaling three billion dollars over a 46-month period, with growth falling to 3.7% in 2023 from 6.6 % in 2022.
The 4% projection made recently is less optimistic than the IMF forecast.
In order to ensure the Egyptian economy’s attractiveness to investors and the recovery of growth, Azour said it is crucial for a programme that will be implemented over 4 years to anchor confidence by accelerating reforms and to maintain the discipline on the macroeconomics.