IMF: lower transit through the Red Sea will reduce Middle Eastern economies’ growth

International Monetary Fund revealed that it expects the economy of the Middle East and North Africa region to grow this year by 2.9%, lower than what the Fund expected last November, against the backdrop of reducing oil production, tightening monetary policy, and the repercussions of the conflict in Gaza that affected neighboring countries and reduced volumes. Transit in the Red Sea increased by more than 40%.

Kristalina Georgieva, Director General of the International Monetary Fund, said that the repercussions of the conflict in Gaza were reflected in tourism in neighboring countries, stressing that the financial institution is closely monitoring the financial effects, which can be observed in areas such as increased spending on social safety nets and defense.

At the end of January, the International Monetary Fund on Tuesday raised its forecasts for global economic growth and updated its forecasts for the economies of the United States and China. It also predicted that inflation would slow at a faster rate than expected.

Pierre-Olivier Gorincha, chief economist at the International Monetary Fund, said that the IMF’s updated World Economic Outlook showed a “soft landing” on the horizon, but overall growth and global trade were still below the historical average.

According to Reuters, Gorinsha told reporters in Johannesburg, “The global economy continues to show remarkable resilience, with inflation steadily declining and growth holding up.” The chance of a soft landing has increased,” he added, adding, “We are very far from a global recession scenario.”

International Monetary Fund revealed that it expects the economy of the Middle East and North Africa region to grow this year by 2.9%, lower than what the Fund expected last November, against the backdrop of reducing oil production, tightening monetary policy, and the repercussions of the conflict in Gaza that affected neighboring countries and reduced volumes. Transit in the Red Sea increased by more than 40%.

Kristalina Georgieva, Director General of the International Monetary Fund, said that the repercussions of the conflict in Gaza were reflected in tourism in neighboring countries, stressing that the financial institution is closely monitoring the financial effects, which can be observed in areas such as increased spending on social safety nets and defense.

At the end of January, the International Monetary Fund on Tuesday raised its forecasts for global economic growth and updated its forecasts for the economies of the United States and China. It also predicted that inflation would slow at a faster rate than expected.

Pierre-Olivier Gorincha, chief economist at the International Monetary Fund, said that the IMF’s updated World Economic Outlook showed a “soft landing” on the horizon, but overall growth and global trade were still below the historical average.

According to Reuters, Gorinsha told reporters in Johannesburg, “The global economy continues to show remarkable resilience, with inflation steadily declining and growth holding up.” The chance of a soft landing has increased,” he added, adding, “We are very far from a global recession scenario.”