Economic Transformation: Middle East and North Africa Economic Monitor

Abstract

Economic growth in MENA is projected to rebound in 2018, thanks to the positive global outlook, oil prices stabilizing at relatively higher levels, stabilization policies and reforms, and recovery and reconstruction as conflicts recede. Growth in MENA is expected to rebound to 3.1% in 2018, following a sharp decline to 2% in 2017 from 4.3% in 2016. The increase in growth is broad-based, and almost all countries will experience an uptick this year. On the back of a good performance by Gulf Cooperation Council countries, oil exporters could see growth reach 3% in 2018, double their rate in 2017. Improvement in oil importers is also expected to be driven by a sharp rebound in Egypt. Stabilization policies, reforms, and a surge in foreign receipts are expected to lower fiscal and external imbalances in 2018 and beyond. In the short term, the outlook for MENA remains positive, and the growth