IMF Projects 2.2% Growth for MENA Region in 2024

UAE, 19 July, 2024 : Growth in the Middle East and North Africa (MENA) region is projected to rise from 1.8% in 2023 to 2.2% in 2024 and 4% in 2025, according to the International Monetary Fund (IMF)'s latest World Economic Outlook Update. These figures are revised downward from April's forecast of 2.7% growth in 2024 and 4.2% in 2025.

Global Growth and Trade

Global growth is expected to align with April 2024's forecast at 3.2% in 2024 and 3.3% in 2025. World trade growth is projected to recover to about 3.25% annually in 2024-25, following near stagnation in 2023. The first quarter uptick is expected to moderate due to subdued manufacturing, despite increased cross-border trade restrictions.

Inflation and Monetary Policy

Services price inflation is hindering disinflation progress, complicating monetary policy normalization. The risk of prolonged higher interest rates has increased due to escalating trade tensions and policy uncertainty. Advanced economies are expected to see slower disinflation in 2024 and 2025, with services inflation and higher commodity prices persisting. However, cooling labor markets and declining energy prices should return headline inflation to target by late 2025. In emerging markets and developing economies, inflation is expected to remain higher and drop more slowly than in advanced economies.

Source : www.zawya.com