Middle Eastern economies will recovered from COVID19 economic shock, World Bank report

4/17/2022 4:33:20 PM
 The city of Sulaimani in Kurdistan region that is more developed relative to other cities of the region.
Thanks to unexpected revenue from high oil prices.

In a recent report, the World Bank estimated that the Middle East and North Africa economies will grow by 5.2% in 2022. The fastest growth rate since 2016. Thanks to unexpected revenues from high oil prices that are in the interest of the region's oil-exporting countries.

But growing uncertainty surrounds these predictions due to the ongoing war in Ukraine and the ongoing threats from the coronavirus mutant.

In its report on the latest economic developments, issued by the World Bank, entitled "Reviewing the Facts.. Growth Forecasts in the Middle East and North Africa in Times of Uncertainty." The World Bank expected that the region would record an uneven recovery, as the averages in the region hide significant differences.

The report predicted that the oil-producing countries would benefit from higher prices, along with increased vaccination rates from the Coronavirus, while countries suffering from fragility conditions would be delayed.

But the inflation risks are growing in the entire region due to the tightening of monetary policy at the global level, the unpredictability of the developments of the Corona pandemic, the continuing disruptions in supply chains, and the high food prices.

The report indicated that although the growth rate is expected to rise by 5.2%, the per capita GDP, an indicator of living standards, will hardly exceed pre-pandemic levels.

It is estimated that GDP per capita will grow by 4.5% in 2022 in the countries of the Gulf Cooperation Council. GDP Per capita is expected to grow in middle-income oil-exporting countries by 3% and by 2.4% in oil-importing countries in the region.

The World Bank said that if these predictions come true, 11 out of 17 economies in the Middle East and North Africa may not recover to pre-pandemic levels by 2022.

As of April 4, 2022, the report explained that the average vaccination rates in the Gulf countries reached 75.7%, which is better than their income counterparts. 

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