IMF: Mideast Economies Face Volatile Politics, Oil prices

Political uncertainty and volatile oil prices are weighing heavily on economic growth in the Middle East this year, according to a new report released Monday by the International Monetary Fund. 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, predicts that overall growth across these nations is expected to slowdown from close to 2% last year to about 1.5% in 2019. Inflation is expected to remain unchanged at close to 10%. A closer look, however, shows sharp variations from country to country.
Iran, for example, is expected to be among the hardest hit this year. The IMF expects a 6% retraction in economic growth in 2019 — and that does not factor in the recent announcement by the U.S. that waivers on Iranian oil exports will expire next week, further deepening Iran’s economic recession. Last year, Iran’s economy retracted by nearly 4% and inflation remains high. Wealthy Gulf Arab oil exporters face their own sets of challenges, namely diversifying their economies away from reliance on oil exports for revenue in the face of sharp ebbs and flows in prices over the past six months.The international lender said the six Gulf Cooperation Council countries of Saudi Arabia, the United Arab Emirates, Kuwait, Bahrain, Oman and Qatar will also need to create 1 million new jobs annually for at least the next five years just to keep unemployment rates from climbing...
 

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 "Growth in oil exporters of the MENAP region is projected to remain subdued relative to 2018 amid lower oil prices." - IMF

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Oil as a trigger for the Middle East boiling point ? Old phrase, same story...

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1 minute ago, francoba said:

Oil as a trigger for the Middle East boiling point ? Old phrase, same story...

One day when the oil runs out...

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If the IMF is actually interested in the economic growth of fragile Middle East countries, they'd support them in ways that won't turn out to be the problem itself. Not words, but deeds...

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"Measures to rebuild economic buffers and strengthen resilience in MENA oil-importers should be accompanied by adequate public spending on health, education and social safety nets.." 

Far away from this goal ..

 

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11 minutes ago, Pavel said:

One day when the oil runs out...

.. .. it will start the war.

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Long list for better Middle East (and not only for them) : Cut public debt, counter organized crime - corruption - inadequacy laws (less bureaucracy). To promote more safety in work, in social life, in relations with other nations, to improve geopolitical - geo-economic actions. Respect human rights, freedom, democracy, the life...

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(edited)

10 hours ago, francoba said:

Oil as a trigger for the Middle East boiling point ? Old phrase, same story...

It will be getting a lot worse due to their population bomb going on since WW!. Their population increase and overreliance on petroleum income are destroying their economies. Energy is now relatively inexpensive and will become more so. They are in a vise of their own making. Islamic extremism only adds to the tinder. Many are attempting to emigrate to the best country they can. Allowing them in is usually a bad idea IMHO. 

Edited by ronwagn
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Texas,Petroleum Traffickers

Although we have computer hackers

We're stil controlled by petroleum traffickers

The Hunts,the Hughes.,the wildcatters and the Bushes

One of them pulls while the other one pushes

Oil  from the state as  fast as it gushes

Then having gotten gotten wealthy on this chemical feast

Invest your oil in the Middle East

And send your children to fight in the land of the Christian Beast

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Good job!  This is why we need to watch geopolitics, as ugly as the truth may be.  I trade oil stocks, that's why I'm on this site.

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