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News ID: 48717
Publish Date : 10 January 2018 - 20:00

WB Warns of Risks Against Economic Growth in Mideast, North Africa

DUBAI (Xinhua) - World Bank Group said on Wednesday that the economic growth in the Middle East and North Africa (Mena) is projected to continue to be affected by geopolitical risks in 2018.
"The risks to the outlook, while varying between oil exporters and importers, are generally to the downside," the World Bank said in a new report titled "Global Economic Prospects".
"Geopolitical risks remain elevated, and are complicated by a variety of intra-regional diplomatic tensions," the report added.
In June 2017, Bahrain, Saudi Arabia, the United Arab Emirates and Egypt cut diplomatic and economic ties with Qatar.
"All seaborne and air travel links from the involved countries to Qatar were shut and bank lending to Qatar was restricted," said the report.
As a result, the growth in the Mena region is estimated "to have declined markedly to 1.8 percent in 2017 from 5 percent in the previous year, contributed by hydrocarbon sector-led growth decelerations among regional oil exporters."
In addition, weaker-than-expected global oil prices may further cloud growth prospects for the Mena region's oil exporters, it said.
On the upside risks, the World Bank said "long-term investor confidence has been bolstered by reforms to foreign investment accessibility and capital market development."