Signs of Economic Recovery in Middle East and North Africa But Growth Still Impacted by Instability

Stocks and Financial Services Press Releases Thursday October 12, 2017 08:16
Washington D.C.--12 Oct--World Bank
New World Bank report identifies factors influencing the region's medium to long term growth

Washington D.C. – October 11th, 2017 – Despite a growth slowdown in 2017 at 2.1 percent, economic prospects in the Middle East and North Africa (MENA) region are projected to improve in 2018 and 2019 with growth exceeding 3 percent according to the new World Bank MENA Economic Monitor titled "Refugee Crisis in MENA, Meeting the Development Challenge." Both MENA's oil exporters and oil importers will benefit from a steady improvement in global growth; increased trade with Europe and Asia; more stable commodity markets, especially oil; and reforms undertaken in some of the countries in the region.

"The short-term prospects of economic recovery are contingent on several factors, including the uncertainty arising from prolonged conflicts in the region and the massive numbers of forcibly displaced persons" said Lili Mottaghi, World Bank Economist and the report lead author. "MENA countries need to adopt the right mix of policies to grow faster, including reforms to diversify the economies and strengthen the business environment to unleash the potential of the private sector."

The report analyses the impact of the region's ongoing instability on growth prospects, with performance half below pre-2011 levels, making it difficult to address youth unemployment and the needs of refugees across the region as conflicts continue.

"Because the legacy of conflicts tend to lower growth prospects, both the private and public sector will need to be more agile and combine their efforts to chart a new path," said Rabah Arezki, World Bank MENA Chief Economist.

By the end of 2016, over 5.4 million Syrians were registered refugees concentrated at 75 percent in Lebanon and Jordan. The report highlights the impact of the massive scale of inflows of refugees on host countries' and suggests pathways to support countries facing the increasing pressure on public finances and services while maintaining their macro-economic stability. The report suggests that there is a need to transition from humanitarian to development aid and develop more robust statistics to monitor refugees' welfare and international assistance.

" In addition to meeting their immediate needs for food and shelter, refugees need education to build their human capital and jobs to preserve their dignity, and prepare them to return to their home countries when stability is restored. This is a global responsibility" said Hafez Ghanem, World Bank Vice-President for the MENA region. "The donor community, including the World Bank is stepping up its efforts to achieve this goal and mobilize concessional financing to support host countries meet the increased development demand" he added.


Latest Press Release

Circulate Capital Announces RFP Process For South and Southeast Asia-Based Businesses Seeking Capital to Accelerate Ocean Plastic Solutions

- New Impact Investment Management Firm to Finance Regional Waste Management and Recycling Solutions That Remediate and Prevent Ocean Plastic Circulate Capital, the investment management firm dedicated to financing companies, projects, and...

Photo Release: KBTG organizes TECHJAM 2018 nationwide, with over 2 million Baht in prizes up for grab

Mr. Somkid Jiranuntarat, Chairman of KASIKORN BUSINESS-TECHNOLOGY GROUP (KBTG), recently launched the TECHJAM 2018 competition, aimed at finding "Tomorrow Squad", which excels in Coding, Data Science and Design from four regions of Thailand before...

Mega Tech IPO: Asahi Marusan Management say Tencent-backed PDD eye $1.6 billion

Asahi Marusan Management reported this morning that Chinese e-commerce operator Pinduoduo Inc which is backed by Tencent Holdings is planning to raise up to $1.6 billion during its US IPO to bolster its fight against rival Alibaba. Pinduoduo Inc located...

CIMB THAI posts THB 360.1 million net profit for 6M2018

- NIM improved to 3.87%, compared to 3.81% YoY, from more efficient management of funding costs 6M2018 Financial Results Mr. Kittiphun Anutarasoti, President and Chief Executive Officer of CIMB Thai Bank PCL, stated that according to the consolidated...

TechJam 2018 by KBTG, a new era of tech competition to push forward Thailands technology and innovation development, offers chances to win more than 2 million Baht prizes and a trip to Silicon Valley

TechJam 2018 by KBTG aims at finding "Tomorrow Squad", talented Thais who are passionate in Coding, Data Science and Creative Problem Solving/Design from all four regions of Thailand to help turn a new page in the country's history. Winners are entitled...

Related Topics