2019-10-16
The International Monetary Fund raised the growth forecast for Iraq, while reducing it to Saudi Arabia, Iran, Qatar and Kuwait.
Growth in Iraq, the region's second-largest oil exporter after Saudi Arabia, is expected to pick upafter its economy contracted by 0.6 percent last year, the IMF said in its new World Economic Outlook.
The IMF lowered its growth forecast for Saudi Arabia and Iran, the two largest economies in the Middle East, on the back of US sanctions, regional tensions and falling oil prices.
The IMF said Iran's economy is expected to shrink this year by 9.5% amid stifling US sanctions, while growth forecasts for Saudi Arabia slipped to 0.2% from a previous forecast of 1.6 in April and 1.9 in July.
Nonetheless, the IMF said Saudi Arabia's economic growth next year is likely to reach a threshold of 2.2 percent, amid expectations that continued reforms in the kingdom will help strengthen its non-oil sector in 2020.
Growth in Kuwait, Qatar and Oman also fell, and for the UAE, the region's most diversified economy, growth fell to 1.6% from 2.8% in April on the back of falling oil prices and an economic slowdown in Dubai.
burathanews.com
