The International Monetary Fund has slightly lowered its global growth forecast for 2023 as the pace of interest rate hikes slows, but warned that severe financial system disruptions could drive output to near-stagnation levels.
The fund stated in its latest report on global economic prospects that the risks of spreading infection in the banking system were contained through strong political measures, after the collapse of two US banks and the forced merger of Credit Suisse.
The International Monetary Fund expects global real GDP growth to reach 2.8% in 2023 and 3% in 2024, down sharply from 3.4% growth in 2022 as a result of monetary tightening.
The International Monetary Fund lowered its forecast for the growth of the economies of the Middle East and North Africa region for the current year (2023) to 3.1%, compared to 3.2% previously forecast.
The economies of the region achieved a growth rate of 5.3% last year.
Fund expectations for some Arab countries
Saudi Arabia: 3.1% in 2023, compared to 8.7% in 2022
Egypt: 3.7% in 2023 compared to 6.6% in 2022
Qatar: 2.4% in 2023, compared to 4.2% in 2022
Kuwait: 0.9% in 2023, compared to 8.2% in 2022
Sultanate of Oman: 1.7% in 2023 compared to 4.3% in 2022
Tunisia: 1.3% in 2023, compared to 2.5% in 2022
Iraq: 3.7% in 2023, compared to 8.1% in 2022
Morocco: 3% in 2023, compared to 1.1% in 2022