Growth in the near term remains subdued for
oil exporters in the Middle East, North Africa,
Afghanistan, and Pakistan (MENAP) region, amid
volatile oil prices, precarious global growth, elevated
fiscal vulnerabilities, and heightened geopolitical
tensions. In addition, declining productivity is
dampening medium-term growth prospects. To
reduce dependence on oil prices and pave the way for
more sustainable growth, fiscal consolidation needs
to resume, underpinned by improved medium-term
fiscal frameworks. In parallel, structural reforms
and further financial sector development would
boost foreign direct investment (FDI) and domestic
private investment and foster diversification,
thus contributing to improved productivity and
potential growth.
Regional Economic Outlook, October 2019, Middle East and Central Asia