IMF slashes growth forecasts in the Middle East again amid an ‘unusually high level of uncertainty’

IMF slashes growth forecasts in the Middle East again amid an ‘unusually high level of uncertainty’

The International Monetary Fund revised its growth forecasts for the Middle East and North Africa downward again amid an "unusually high level of uncertainty," according to its latest regional economic report.

It now expects MENA economies to contract 5.7% in 2020. In April, it predicted that the region would shrink 3.3% for the year.

"The unusually high level of uncertainty regarding the length of the pandemic and its impact on firm closures, the resulting downside risks (including social unrest and political instability), and potential renewed volatility in global oil markets dominate the outlook," the report said.

Jihad Azour, director of the IMF's Middle East and Central Asia department, said the region experienced "twin shocks" with the coronavirus pandemic and depressed oil prices.

"Managing this crisis had a big impact and a toll on the economy and this is why we had to revise our growth rates downward this year," he told CNBC's Hadley Gamble on Sunday.

"I would say (the downgrade is) in line with most of the countries in the world, but in our part of the world, with the diversity of the economies and the linkages that exist between oil exporting and oil importing, this is going to be a challenge going forward," he