Special Features
Global recovery offers opportunity for growth and policy reforms in MENA
The World Bank Group’s latest regional economic update projects growth in the Middle East and North Africa (MENA) region to accelerate from an average of 2.6% in 2013 to 4.6% in 2015. With the global economy set for a rebound, 2014 seems hopeful and 2015 could be a turning point for countries in the MENA region as they should start to benefit from stronger external demand in the high-income economies."Positive advances in the political climate of the transition countries could likely set the stage for gradual improvements in economic prospects," said Inger Andersen, World Bank Regional Vice President for the Middle East and North Africa. "Persisting with the necessary economic and structural reforms will undoubtedly help countries in the MENA region tackle problems that have previously prevented them from moving to a higher and sustainable growth path." The outlook for the economies in the MENA region is cautiously positive. Higher global demand is expected to boost exports of energy and manufactured products in those countries that trade with high-income countries. The oil exporters in the MENA region, especially the GCC countries, are expected to lead the regional recovery with growth reaching 3.5% in 2014 and 4.8% in 2015.
"The global recovery is still fragile and downside risks, including continued low inflation in high-income economies and the escalation of conflict in Ukraine, remain," said Shanta Devarajan, World Bank Chief Economist for the MENA region. "The biggest risk to economic recovery in the MENA region is that long-standing structural problems do not get resolved." The report, "Middle East and North Africa: Harnessing the Global Recovery, a Tough Road Ahead", outlines economic challenges and opportunities facing countries in the region and underscores the importance of persisting with reforms.
