MENA region witnesses growth in economic situation in 2022, according to IMF official

Economy

Published: 2023-04-14 22:38

Last Updated: 2024-03-27 11:20


Editor: Ro'a Hanini

MENA region witnesses growth in economic situation in 2022, according to IMF official
MENA region witnesses growth in economic situation in 2022, according to IMF official

IMF official praised the economic situation for the MENA region in 2022 but stressed that growth is projected to slow in 2023 due to tight policies.

“We estimate that the GDP grew by 5.3 percent, reflecting strong domestic demand and the rebound in oil production,” Jihad Azour, the Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF) said Thursday.

Growth is projected, however, to slow this year to “3.1 percent due to tight policies (designed) to restore microeconomic stability, agreed OPEC plus production cuts, and the fallout from the recent deterioration in global financial conditions,” he added.

The growth of exporters in MENA “is projected to slow from 5.7 percent in 2022, to 3.1 percent this year with the main driver of growth shifting from oil to non-hydrocarbon activities in most countries.”

- What about Jordan? -

“Jordan has been able to confront a number of major shocks that have had an influence on the Jordanian economic stability,” Azour said, citing the pandemic, inflation and volatility as examples.

“Jordan has been able to maintain economic stability, notwithstanding a high –- a really high debt,” he said.

“Growth rates are relatively low in Jordan, and this has to do with the high unemployment rate. Especially after the corona pandemic crisis, it’s important to address this issue.”

The way to address the issue, according to Azour, is by “deepening the reforms that would improve the business environment and the investment possibilities.”

“Increasing the investment, improving the business environment, and reducing the cost of doing business, all these things would attract the private sector,” he added.

In regards to the energy sector in the country, Azour said: “We are counting on the ability of the Jordanian economy to invest in the new energies and in the alternative resources of energies in such a way that would develop such modern technologies.”

“It’s a young economy, there are so many opportunities of employment and economy in the servicing sector. And it would be useful to expand such opportunities in order to give Jordan the opportunity to expedite growth,” he added.