IMF forecasts 4.5% growth in Middle East

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The International Monetary Fund has forecast that economic growth in the Middle East and North Africa region will reach 4.5 per cent this year, driven by higher commodity prices and government spending.

But the IMF warned on Wednesday that there was “substantial uncertainty about this outlook”, including the risk of fallout from debt problems of Dubai Word, the emirate’s government-owned conglomerate that is seeking to restructure debts of about $23bn.

The fund said the economic impact of Dubai World had been relatively limited so far but cautioned that its “full impact may not be felt for some time”.