Progress in Center East, Central Asia to sluggish amid world challenges – IMF


DUBAI (Reuters) – Financial development within the Center East, North Africa and Central Asia areas will sluggish in 2023, underlining the necessity to speed up structural reforms, the Worldwide Financial Fund (IMF) stated on Wednesday.

Actual GDP development within the Center East and Central Asia is forecast to fall to 2.9% in 2023, from 5.3% final 12 months, earlier than enhancing to three.5% in 2024, the IMF stated in its Regional Financial Outlook report.

Progress within the Center East and North Africa area will sluggish to three.1% in 2023, from 5.3% a 12 months in the past, and to 4.2% within the Caucasus and Central Asian states from 4.8% final 12 months.

“Uncertainties are excessive and there are a variety of dangers which are impacting the outlook for the area,” IMF regional director Jihad Azour advised Reuters.

“Some dangers are world, some are associated to the danger of fragmentation, however a few of it is because of the truth that a sure variety of international locations have a excessive stage of debt,” he stated.

The report stated that tight financial and monetary insurance policies throughout the area and tight monetary circumstances “name for accelerating structural reforms to bolster potential development and improve resilience.”

Progress in Egypt is forecast to sluggish to three.7% in 2023 from 6.6% in 2022 amid financial woes that led it to hunt a $3 billion, 46-month monetary help bundle from the IMF.

The IMF forecast is extra conservative than the 4% projected in a current Reuters ballot.

“It is vitally necessary for a programme that’s set to be applied over 4 years to anchor confidence by accelerating reforms, and in addition to take care of the self-discipline on the macroeconomic entrance, to verify the attractiveness of the Egyptian financial system for traders and the restoration of development is taking form,” Azour stated.

(Reporting by Rachna Uppal; Enhancing by Conor Humphries)

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