IMF: Volatile Politics and Oil Prices Hinder Mideast Growth
Political uncertainty and volatile oil prices are hindering economic growth in the Middle East this year, but trends should reverse next year, according to a new report released Monday by the International Monetary Fund. The IMF’s regional outlook report projects growth to rise just 0.5% in 2019, compared to 1.6% in 2018. Increased activity in the oil and gas sectors is expected to generate a rebound to 2.7% growth in 2020, though this figure too falls shorter than previous projections. The report, which looks at the economies of 23 countries spanning North Africa, the Levant, the Persian Gulf, but also Djibouti, Somalia, Afghanistan and Pakistan, said the drops were linked in part to the performance of the oil exporting countries, whose economies are expected to retract 1.3% this year. The hardest hit has been Iran and Libya. The IMF expects a 9.5% retraction in Iran’s economic growth in 2019, primarily because of U.S. sanctions against it, and in Libya a 19.1% drop because of that country’s prolonged conflict. Recent months have also seen a series of mysterious oil tanker attacks the U.S. blames on Iran, something Tehran denies. Iran, which has seen its main export of oil severely restricted, also …