World Bank Predicts High Inflation in Food Prices to Cause Economic Slowdown in Middle East and North Africa
Shafaq News/ The World Bank has predicted that double-digit inflation in food prices across the Middle East and North Africa region this year will cause a slowdown in economic growth from 5.8% in 2022 to 3% in 2023.
The bank has also revised its forecast for the region's growth in 2023 from 3.5% to 3%.
The report was prepared before the OPEC+ group's recent announcement of oil production cuts, which led to an increase in oil prices and inflation expectations.
The World Bank's projections exclude any impact of this decision.
The report warns that the rising food prices and the consequent deterioration of the nutritional situation will have long-term consequences for children's growth and prospects.
The World Bank called for "bold policies" to address this issue, especially as youth make up more than half of the population in the region.
The per capita GDP growth rate is expected to slow to 1.6% in 2023, compared to 4.4% in 2022. The GCC countries' growth is expected to decline to 3.2% in 2023 from 7.3% in 2022 due to the anticipated fall in oil prices from their 2022 levels. Except for Egypt, developing oil-importing countries such as Tunisia and Lebanon are expected to achieve growth rates of 2.8% in 2023 and 3.1% in 2024. Egypt is expected to record relatively high growth of 4% for 2023 and 2024.
Developing oil-exporting countries like Algeria and Iraq are expected to experience a growth rate of 2.2% in 2023, a decrease from the 3.9% growth seen in 2022.
The World Bank also warned that food insecurity in the developing countries in the region is expected to affect nearly one in five people this year and that the increase in food prices between March and June 2022 may have increased the risk of stunting among children by 19-24% in these countries, putting about 200,000 to 285,000 newborns at risk.
The World Bank predicts the region's growth in 2024 will be 3.1%.
