The World Bank is optimistic about a recovery in the Middle East and North Africa

April 19, 2018 | 3:26 PM -


Iraqi Position Network

The Middle East and North Africa (MENA) region is expected to recover to 3.1 per cent in 2018, up from 2 per cent in 2017, the World Bank said in its latest Economic Watch report issued by the Bank's Middle East and North Africa International.

The report predicts that the increase in the growth rate will be widespread, thanks to the favorable global economic environment, the stabilization of oil market prices at a slightly high level, and the resumption of reconstruction work as conflicts recede.

"There are reasons to be optimistic," said Hafiz Ghanem, World Bank Vice President for Middle East and North Africa. It is time to focus on creating more jobs and economic opportunities for young people. "Positive economic prospects offer an opportunity to accelerate reforms to unlock the potential of the private sector as a driver for growth and job creation."

With GCC economic performance improving, oil-exporting countries may experience a growth rate of 3% in 2018, double their level in 2017. Oil-importing countries are also expected to experience an average growth rate of 4% from 2018 to 2020 Due to the remarkable recovery in Egypt and the increase in remittances and revenues from tourism and exports. Almost all the countries of the region have embarked on major, albeit slow, reforms to reduce or eliminate energy product subsidies, identify new sources of non-oil revenues and expand social safety nets to protect the poor from any negative effects that this change may cause.

"While stability policies have helped the economies of the region adapt to the changes in recent years, the region still needs much faster growth to absorb hundreds of millions of young people entering the labor market in decades," said Rabah Arzaki, chief economist for the Middle East and North Africa at the World Bank. Coming. "

Low oil prices and the global shift to renewable energy to meet climate goals include many risks and opportunities, he said, noting that the Middle East and North Africa region can benefit from the power of solar technology because of the high rate of solar energy falling on it. To achieve this, risks must be transformed into opportunities for innovation and adoption of new technologies. In addition to helping the region adapt to the new reality of low oil prices, the use of new technologies could be a new engine of growth and functionality for the regions.

This will need to focus on corporate governance, improve the business environment, and create a new corporate incentive system that encourages the bold and creative thinking required for economic transformation.

Adoption of new technologies will require significant investment in infrastructure that needs more private funding. This could be achieved through public-private partnerships, which Jordan used, for example, to build the Queen Alia airport, and Egypt also used to attract significant private investment in its energy sector. Public-private partnerships have the added advantage of relying on innovation and efficiency in the private sector, a move towards changing the role of the state from the main provider of employment to enabling private sector activity.

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