The International Monetary Fund reduces growth forecast for the Middle East and Central Asia
Jihad Azour, Director of the Middle East and Central Asia Administration at the International Monetary Fund, warned that the global economy stands at & quot; a precise crossroads & quot; where the recent recovery faces new risks caused by escalating geopolitical tensions and re -arrangement of governments for their priorities, which casts a shadow on the economic prospects for the Middle East and North Africa, the Caucasus and Central Asia. Today, Thursday, during a press conference on regional economic prospects, where Azour explained that the unusual global uncertainty, related to rapid policies and increasing geopolitical fragmentation, will continue to reduce confidence for some time and represent a serious negative risk to global growth. The current in the region, including ongoing conflicts, pockets of political instability, and climate challenges. More clearly & quot;
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pointed out that the slowdown in global growth may weaken the external demand, and that tightening the financial conditions may constitute a challenge for countries with high public debts, and oil exporting economies may also witness a deterioration in their financial and external centers due to low oil prices, and although some countries may benefit from tracing trade paths, but that These gains may be short -term in a broader environment that prevails in trade in the trade. Celsius on October expectations.
& nbsp; In influencing economic activity in oil exporting countries & quot, for the Gulf Cooperation Council countries, strong growth in the non -oil sector and diversification efforts are largely met by oil production discounts. The repercussions of conflict and provide reconstruction efforts and the implementation of reforms, however, these expectations were modified by reducing compared to October 2024 expectations, to reflect the weak global growth.
& nbsp; Inflation, it is expected that it will continue to decline in many economies, while remaining high in a few cases. Azwar pointed out that & quot; with the return of these temporary effects to normal during the next few years, it is expected that growth will slow down due to poor external demand, the slowdown in the growth of hydrocarbons, and the reduction of financial incentives & quot;
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I stressed that these expectations are surrounded by a case & quot; Exceptional certainty & quot; And that the risks are still tending to the negative side, and identifying four main risks, most notably geopolitical tensions, regional political conflicts, climate shocks, and low official development assistance, which may exacerbate food insecurity and human conditions in low -income countries affected by conflicts. For conflicts and accelerate the implementation of structural reforms, which may significantly improve the prospects for regional growth. The total economy and financial stability, with policy adaptation according to the circumstances of each country and the risks of its weakness, as well as the long -term economic transformation, and accelerating the agenda of structural reforms that have long been discussed to reduce exposure to shocks and seize opportunities arising from the development of global trade and the financial scene, and this includes enhancing governance, investing in human capital, developing digitization, enhancing a private sector Dynamic. Sustainable.
& nbsp; Middle and North Africa, Pakistan, the Caucasus and Central Asia, 14.8 billion dollars have been approved since early 2024. & nbsp;
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also highlighted the focus on economies affected Efforts.
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