IMF expects MENA real GDP to grow 4% in 2021

IMF expects MENA real GDP to grow 4% in 2021

The International Monetary Fund (IMF) has upgraded its outlook for the real gross domestic product (GDP) growth in the MENA region to 4% in 2021, compared to its October projection of 3.2%.The non-oil GDP of oil-exporting countries is forecast to increase by 3.3% in 2021, driven by higher oil prices and early vaccine rollouts.Meanwhile, the oil GDP would grow by 5.8% in 2021 amid the surge in Libya's oil production by more than 233% following the reopening of oil fields and ports in late 2020.As for oil importers, their economies are forecast to register a growth rate at 2.3% in 2021, a downgrade of 0.4% compared to the IMF's October 2020 outlook.Growth projections for Jordan, Morocco, and Tunisia, which highly depend on the tourism sector affected by the coronavirus (COVID-19) pandemic, have been downgraded.Egypt and Pakistan's economies, which were relatively resilient in 2020, would witness a slow recovery in 2021.In the meantime, the region is projected to record a rise in inflation to 12.8% this year, driven by higher food prices in countries where food greatly contributes to the consumption basket, higher energy prices in oil-importing countries, depreciation in some countries, and monetary financing in others."2021 will be the year