Dubai – Mubasher: A modest recovery is expected to continue in the MENAP despite a slump in oil prices, raging regional conflicts, and lingering uncertainty of the post-Arab Spring transitions, the International Monetary Fund said in its ‘Regional Economic Outlook” report issued Tuesday.
The fund added that, despite a sharp decline in oil prices, growth in the oil-exporting countries is projected to remain steady at 2.4 % in 2015, with inflation subdued.
“Faced with large oil revenue losses, most countries are expected to use accumulated financial buffers and available financing to cushion some of the impact on growth while gradually slowing their fiscal spending, so that they can share the now reduced oil wealth equitably with future generations and rebuild buffers for dealing with oil price volatility,” said the fund.
It indicated that specific policy announcements would help reduce uncertainty about how medium-term fiscal consolidation plans will be carried out.
The IMF also expects growth in the oil-importing countries to strengthen from 3% in 2014 to 4% in 2015, supported by a gradual recovery in the euro area, improved domestic confidence, and more accommodative fiscal and monetary policies.
