The growth of the economies in the Middle East and North Africa (MENA) is expected to fall sharply this year, the World Bank forecasts.
The region’s gross domestic product (GDP) is expected to plummet to 1.9% in 2023 from 6% in 2022, due to oil production cuts amid subdued oil prices, tight global financial conditions and high inflation, according to the latest issue of the World Bank MENA Economic Update (MEU), released Thursday. The update coincides with the World Bank and International Monetary Fund's joint annual meeting in Marrakesh, Morocco, next week.
The decline in growth in MENA this year is expected to be more pronounced in the oil exporting countries of the Gulf Cooperation Council (GCC), the report said.
The World Bank forecasts real GDP growth in the GCC to be at 1% for 2023, down from 7.3% in 2022 as a result of lower oil production and reduced oil prices. In developing oil exporting countries, growth is forecast to decline from 4.3% in 2022 to 2.4% in 2023.
