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HomeEnvironmentPolicies Require Calibrated Approach To Mitigate the Uncertainties of MENA's Economic Recovery

Policies Require Calibrated Approach To Mitigate the Uncertainties of MENA’s Economic Recovery

Dubai International Financial Center The Financial Center (DIFC) in the Middle East, Africa and South Asia (MEASA) region International Monetary Fund (IMF) April 2022 Regional Economic Outlook (REO) for the Middle East and North Africa (MENA) regions.

According to the title IMF report “Different recovery in times of turbulence”War in Ukraine Sanctions on Russia exacerbate the disparity in recovery prospects for the MENA region.

The IMF Regional Economic Outlook Report details trends and developments across the Middle East and Central Asia. The report’s findings and indicators are widely used as benchmarks for future economic forecasts, laying the groundwork for growth, trade and investment.

Countries The region was amazed at the positive growth it experienced in late 2021. This remained momentum until 2022, despite a surge in inflation and a slowdown due to a temporary pandemic in January.

Despite better-than-expected economic performance, the 2022 economic environment is defined by the uncertainty of commodity importers in particular, with increasingly fluctuating commodity prices, rising inflationary pressures and faster-than-expected monetary policy in developed countries. We can see the normalization of policy. Everything was wrapped in a protracted pandemic.

Oil-importing countries face challenges such as rising food and energy prices, tightening fiscal conditions, accelerating inflation, and deteriorating external and fiscal accounts.

Some countries are directly exposed to war supply disruptions due to their heavy reliance on wheat and energy imports from Russia and Ukraine.

Oil exporters, on the other hand, will benefit from rising energy prices, but can still be adversely affected by fluctuations in oil and gas markets and tightening borrowing costs.

Policymaking in this sector is becoming more complex, with less macro-policy space to deal with shocks amid high debt and inflation.

Policies are carefully tailored to national circumstances to manage uncertainty, maintain macroeconomic stability, support recovery, and ensure food and energy security while protecting the most vulnerable. is needed.

Structural reforms are even more urgent to prevent the scars of pandemics and wars, ensure inclusive recovery, and increase future resilience.

Arif Amiri

“The long-standing partnership between the DIFC and the IMF on the Regional Economic Outlook Report will bring together the thinking of the financial industry and other decision makers contributing to the economic growth of Dubai and the United Arab Emirates,” he said. I am. Aleph AmiriChief Executive Officer of DIFC Authority.

“The latest report includes optimism for Dubai and DIFC clients who are best suited to take full advantage of opportunities to support sustainable growth in the post-pandemic world... “

Jihad AzulThe IMF’s Director of the Middle East and Central Asia Division said: Help us pave the way for Ukraine, and a more resilient, inclusive and more environmentally friendly future. “

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