Yet the World Bank notes that growth, and projected growth, is no longer diverging significantly between the two. It projects annual growth of 2.8% for oil exporters, and 2.5% for other nations. This has to be balanced against the phenomenon of the ‘crowding out’ of private sector investment by high public sector spending, which the World Bank report refers to. The World Bank noted that debt levels had been rising in the region even before the pandemic. In practice, episodes of higher growth or higher inflation over the past decade have coincided with faster debt accumulation.

Source: The North Africa Journal May 19, 2024 18:33 UTC