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IMF lowers economic growth forecast for most Arab countries

IMF lowers economic growth forecast for most Arab countries
In its semi-annual World Economic Outlook report released Tuesday, the International Monetary Fund (IMF) has lowered its economic growth forecasts for most Arab countries over unrest in the region but said growth would remain generally strong in the oil-rich Gulf states, reported Daily Star website.
The Middle East and North African (MENA) region would grow by 2.6 percent this year, compared with 3.2 percent forecast in April, the fund added.
And even though the figure for next year is seen as higher, it was cut from 4.5 percent to 3.8 percent.
"With increased strife in some countries in the region, the projected pickup in growth in 2014 ... is now projected to be weaker relative" to the April forecast, the IMF said.
"Growth is expected to increase in 2015, assuming that security improves, allowing for a recovery in oil production, particularly in Libya," it said.
The most spectacular drop is expected in Iraq, whose economy is being hit hard by the conflict between a U.S.-led coalition and ISIS.
The fund expected that Gross Domestic Product (GDP) growth rate in Egypt will stand at 3.5% in 2015, compared to 2.2% in 2014.
The IMF also forecasted an unemploy¬ment rate of 13.9% in 2015 versus 13.6% in 2014 and an increase in inflation to 13.5% in 2015 versus 10.1% in the previous year.
Although Egypt restored some of the lost confidence in its economy to sustain growth, continuing reform steps and searching for financing sources are of a utmost importance in order to secure economic stability, boost growth rates and create more jobs, according to the report.
In a press briefing Tuesday, Thomas Helbling, Chief of the World Economic Studies Division, Research Department, IMF, said in a press conference that the situation in Egypt is still difficult.
He added that Egypt should seek to achieve political stability and financial discipline, noting that the North African country began initial steps to implement difficult reforms.
Olivier Blanchard, IMF Economic Counsellor and Director of Research Department, said the global economy is expected to grow by 3.2% in 2014 and 3.8% in 2015.