IMF says Mideast, North Africa economies resilient in 2022

DUBAI, United Arab Emirates (AP) — The economies of Middle Eastern and North African countries were resilient this year, but double-digit inflation is expected to slow growth in 2023, the International Monetary Fund said Monday.

The IMF forecast GDP growth at 5% in 2022 for countries in the region. For oil-exporting nations, growth was projected at 5.2%, mainly due to high oil prices and robust GDP growth in other countries, which offset the impact of high food prices.

But the rate of growth is expected to slow in 2023, due in part to inflation driven by high food and commodity prices, the report said. And the outlook remained so dire for politically unstable Lebanon and war-scarred Syria that the IMF reported no economic projections for either.

Higher energy prices sustained oil-producing nations, such as Saudi Arabia, where economic growth is expected to hit 7.6% this year. Oil exporters are also benefitting from trade diversions caused by the war in Ukraine, as some European countries look to replace their oil purchases from Russia.

As a whole, the IMF expects that in the next five years, the level of additional inflows and financial reserves to Mideast oil-exporting countries will exceed $1 trillion.

The extra financial inflows are critical to Gulf Arab countries as they try to diversify their economies away from dependence on oil and as the world seeks greener technologies to power industry.

Growth in the region next year is projected at 3.6% due to worsening global conditions such as the consequences of the war in Ukraine for commodity prices and the slowing global economy. For oil exporters, growth will likely slow to 3.5% as oil prices weaken, global demand slows and OPEC production reduces.

“We expect the outlook for next year to be less variable than this...