IMF forecast: economic growth in the Middle East will slow down in 2023

Reuters reports that the International Monetary Fund has stated that economic growth in the Middle East, North Africa, and Central Asia will slow down this year, underscoring the need for accelerating structural reforms.

According to the forecast, real GDP growth in the Middle East and Central Asia will decline from 5.3% last year to 2.9% in 2023, and then rise to 3.5% in 2024.

Growth in the Middle East and North Africa region will slow down from 5.3% a year ago to 3.1% in 2023, while in the Caucasus and Central Asia countries, it will fall from 4.8% last year to 4.2%.

Despite high uncertainty, there are a number of risks that affect the region's prospects, as stated by IMF's regional director Jihad Azour. Some of these risks are global, some are related to the risk of fragmentation, but some are related to high debt levels in several countries.

The region's tight monetary and fiscal policies and harsh financial conditions require the acceleration of structural reforms to support growth and sustainability, according to the IMF report.

In particular, Egypt's GDP growth will slow down from 6.6% in 2022 to 3.7% in 2023 due to economic problems.