ISMR June 2022 - Page 32

Image : Shutterstock . com .

MENA IN FOCUS

The Middle East and North Africa ( MENA ) region ’ s economies are projected to grow by around 5 % in 2022 , the fastest rate since 2016 .
The Dubai skyline ( Shutterstock . com ).

MENA is an acronym for the Middle East and North Africa “ The region is focusing on

( MENA ) region . MENA initiatives such as economic countries include Algeria ; Djibouti ; diversification , better
Bahrain ; Egypt ; Iran ; Iraq ; Israel ; Jordan ; industrial competitiveness and sustainable
Kuwait ; Lebanon ; Libya ; Morocco ;
development goals .” Oman ; Qatar ; Saudi Arabia ; Syria ; Tunisia ; United Arab Emirates and Yemen .
The region is typically considered to include around 19 countries , including many OPEC nations , but the definition can be stretched to include up to 24 . The MENA region accounts for approximately 6 % of the world ’ s population , according to World Atlas , along with 60 % of the world ’ s oil reserves , and 45 % of the world ’ s natural gas reserves . Due to its substantial petroleum and natural gas reserves , MENA is an important source of global economic resources .
The World Bank MENA Economic Update ( April 2022 ) estimates that the Middle East and North Africa ( MENA ) region ’ s economies will grow by 5.2 % in 2022 , the fastest rate since 2016 . However , uncertainty reigns with the unpredictable course of the war in Ukraine and scientific uncertainty over the evolutionary path of the virus that causes COVID-19 .
According to the Update , the region ’ s economic recovery may be uneven as regional averages mask broad differences between countries . Oil producers may benefit from elevated energy prices along with higher vaccination rates for COVID-19 , while fragile countries lag . Per capita GDP , which is a more accurate measure of people ’ s standard of living , barely exceeds pre-pandemic levels due to a lacklustre performance for most countries in 2020-2021 . If these forecasts materialise , 11 out of 17 MENA economies may not recover to pre-pandemic levels by the end of 2022 .
The World Bank MENA Economic Update ( April 2022 ) estimates that the Middle East and North Africa ( MENA ) region ’ s economies will grow by 5.2 % in 2022 , the fastest rate since 2016
Market outlook
Due to the strategic importance of their oil reserves , countries in the MENA region have been affected by major local conflicts as well as interference by foreign powers . The COVID-19 pandemic and the Russian invasion of Ukraine have also affected the region . Inflation surged in 2021 , to 14.8 per cent in the MENA region . However , real GDP growth for 2021 was revised up to 5.8 per cent in MENA by the International Monetary Fund ( IMF ).
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