Only 17% of Chief Economists Expect Strong Growth in MENA Region, Says Report

Only 17 percent of chief economists anticipate strong growth in the Middle East and North Africa (MENA) for 2024-25, Arab News reported yesterday citing the World Economic Forum’s latest Chief Economists Outlook.

The International Monetary Fund projects MENA’s growth to increase from 2.2 percent in 2024 to 4 percent in 2025. In contrast, 48 percent of economists expect moderate growth, while 31 percent predict weak growth in 2024 and 34 percent in 2025.

South Asia is seen as having the most growth potential, with 70 percent of economists forecasting strong or very strong growth in the same period. Meanwhile, nearly 90 percent of economists in the U.S. expect strong or moderate growth this year, while Europe faces challenges, with 69 percent expecting weak growth.

The report highlights easing inflation and strong global commerce as key drivers of cautious optimism for recovery. However, elevated debt levels are concerning for both advanced (53 percent) and developing (64 percent) nations. Geopolitical tensions pose additional risks, with 91 percent of respondents noting they could undermine global collaboration.

In terms of inflation, 63 percent of chief economists foresee moderate inflation in the MENA region for 2024, increasing to 68 percent in 2025. A significant 62 percent expect a loosening of monetary policy in the region, reflecting a broader trend across major economies.