Jihad Azour, the Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), has stated that the GDP growth rate in the Middle East and North Africa region is expected to decline to 3.1% in 2023, compared to 5.3% recorded a year earlier.
“Growth is projected to slow this year due to tight policies to restore macroeconomic stability, agreed OPEC+ production cuts, and the fallout from the recent deterioration in global financial conditions,” Azour told a press briefing.
According to Jihad Azour, the Middle East and North Africa region’s GDP growth is expected to decrease to 3.1% in 2023, down from 5.3% a year ago, with non-hydrocarbon sectors driving growth. MENA oil-exporting countries will see their growth slow to 3.1%, down from 5.7% last year, while low-income countries in the region will have a growth forecast of 1.3% due to macroeconomic instability, high commodity prices and country-specific fragilities, according to Reuters.
The recent announcement by OPEC+ member states, including Saudi Arabia, to cut oil production starting in May will lower growth for the GCC region, but it will have a positive impact on fiscal and external positions. Despite lower growth projections for this year, the non-oil sector in Saudi Arabia is expected to continue growing, backed by labour market reforms, job creation, and increased activity from megaprojects and investments as it moves towards economic diversification.
