Due to double-digit food price inflation, the World Bank predicted in a regional study released on Thursday that the Middle East and North Africa region’s growth would decrease to 3% this year from 5.8% last year.
In light of new information, the 3.5% growth projection for 2023 has been reduced.
According to the World Bank, their forecasts do not account for the effect of the unanticipated OPEC+ oil supply cuts. The cuts were announced on Sunday, which have driven up oil prices and price expectations.
World Bank estimates that between March and December of 2022, food inflation in sixteen MENA countries averaged 29% per year. It was significantly higher than the region’s aggregate headline inflation rate of 19.4%.
The study expressed concern that the long-term effects of inadequate nutrition caused by rising food prices will be detrimental to the development and future prospects of children.
Vice President of the World Bank for the Middle East and North Africa, Ferid Belhaj, stated, “In a region where more than half of the population is youthful, bold policies are required.”
The World Bank forecasts that the growth of per capita gross domestic product will slow to 1.6% in 2023 from 4.4% in 2022.
In the Middle East and North Africa (MENA), there is a wide spectrum of economic development, from the affluent oil exporting nations of the Gulf Cooperation Council (GCC) to conflict zones like Yemen and emerging oil importers like Jordan and developing oil exporters like Iraq.
While oil prices are expected to decline from their highs in 2022. This year’s development in the GCC is expected to decelerate to 3.2% from 7.3% last year.
In 2023, the growth rate for developing oil exporting nations such as Algeria and Iraq is projected to decrease.
Excluding Egypt, growth projections for growing oil importers; Lebanon and Tunisia are 2.8%, 3 1 in 2023 and 2024
In 2023 and 2024, Egypt is projected to grow by a remarkable 4%.
It is estimated that between 200,000 and 285,000 infants in underdeveloped MENA nations would be at risk of malnutrition.
Roberta Gatti is the chief economist for the World Bank in the Middle East and North Africa. He predicts that nearly one out of every five persons living in impoverished countries in MENA will face food insecurity.
The World Bank predicts that the region will grow by 3.1% in 2024.
