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The increase in economic growth from 4% to 4.1 is mainly due to the rapid introduction of vaccines in certain areas of the region.
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Published on October 19, 2021
The International Monetary Fund has become more optimistic about the economic growth prospects of the Middle East and North Africa this year and next because of the uneven recovery in the region.
The Washington-based bank raised its forecast for economic growth in the Middle East and North Africa this year from 4% to 4.1%. This is mainly due to the rapid introduction of vaccines in certain areas of the region and financial measures taken at the beginning of the pandemic. The growth rate in 2022 is also expected to be 4.1%, higher than the 3.7% estimated in April.
“However, this recovery is uncertain. I think it’s important to emphasize this point and it’s uneven. Unbalanced because there are still differences in vaccination levels,” the International Monetary Fund’s director of the Middle East and North Africa and Central Asia Jihad Zul said in an interview with Bloomberg. “Inflation is rising, which is a problem for some countries.”
The fund expressed concern last week about the loss of momentum in the global economic recovery. It now expects global production to increase by 5.9% this year, a decrease of 0.1 percentage point from its July forecast.
The International Monetary Fund has identified debt stability, rising unemployment, and the continued impact of the pandemic on small companies as some of the main risks to the region’s recovery. The mid-term GDP is expected to average 2.4%, which is lower than the pre-pandemic level.
It urges governments to increase vaccine distribution, increase fiscal and monetary support, and reduce unemployment in order to maintain the growth momentum.
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