Economic growth in the Middle East, North Africa, Afghanistan and Pakistan (MENAP) region is expected to remain at 2.6% for 2017, rising to 3.4% in 2018, compared to expected global growth of 3.5% and 3.6%, respectively. Higher commodity prices and stronger global trade will support economic activity, while higher interest rates will – to varying degrees – increase fiscal vulnerabilities across the region.
These forecasts are from the spring update of the 2017 Regional Economic Outlook (REO) for the MENAP region, launched recently by the DIFC in collaboration with the International Monetary Fund (IMF).
Produced by IMF, the exclusive report uses internationally verified data to highlight emerging trends and recent economic developments, as well as opportunities and challenges that set the tone for growth, trade and investment in the region.
According to the report, growth in oil-exporting countries of the MENAP region will slow down in 2017 due to cuts in oil production approved under the terms of the recent OPEC+ agreement.
“A more favourable global environment – including higher expected growth and some firming of commodity prices – is providing some breathing space for the MENAP region after what has been a difficult period. Non-oil growth for the MENAP oil exporters is expected to rise from 0.4% in 2016 to 2.9% in 2017, although the production cuts following the OPEC agreement are reducing headline growth.
“For MENAP oil importers, headline growth is projected to increase from 3.7% in 2016 to 4% in 2017,” said Mr Jihad Azour, Director of the Middle East and Central Asia Department at the IMF.
Mr Arif Amiri, CEO of DIFC Authority, said: “2017 looks set to be defined regionally by a focus on economic diversification, privatisation and on the inclusion of emerging economies in the global financial system – trends which play to DIFC’s strengths and which we support through our enabling ecosystem, solid regulatory framework and strategic location at the heart of the South-South corridor. One of the strongest macroeconomic drivers, in fact, is the rise of emerging market economies. They are generating new investment opportunities and serve as an increasingly important source of capital”. M