Wednesday, 12 January 2022

MENA economies post strong recovery in H2 2021, to accelerate in 2022: World Bank  | ZAWYA MENA Edition

MENA economies post strong recovery in H2 2021, to accelerate in 2022: World Bank  | ZAWYA MENA Edition

Economic growth in the Middle East North Africa (MENA) strongly recovered in the second half of 2021 and is poised to step up in 2022, as disruptions caused by the COVID-19 pandemic and oil production cuts wane, the World Bank said.

Output in some economies is now back to pre-pandemic levels and the overall growth in the region will accelerate to 4.4 percent this year, higher than the estimated 3.1 percent in 2021, before moderating to 3.4 percent in 2023, the bank said in its Global Economic Prospects report.

The regional forecast is also in contrast to World Bank’s estimations for global growth, which is expected to decelerate sharply from 5.5 percent in 2021 to 4.1 percent in 2022 amid fresh threats from COVID-19 variants, and as pent-up demand and monetary support dissipate.

However, the World Bank, cautioned that the health outbreak remains a “major risk” for MENA economies, given that only less than two-fifths of the region’s population are fully vaccinated and the rapid spread of Omicron could still impact global demand and lead to lower oil prices.

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