Economic growth in the oil exporters in the Middle East and North Africa will shift from oil to the non-oil sectors due to lower crude production as part of the OPEC+ agreement, the International Monetary Fund (IMF) said in its latest regional outlook published on Wednesday. Economic growth is set to moderate in oil-exporting countries in the Middle East – which are some of the world’s biggest oil exporters, including top crude exporter Saudi Arabia – according to the IMF. That’s due to the OPEC+ cuts decided late last year, and the fresh production cuts announced last month that would run between May and December 2023. This momentum will be sustained due to abundant liquidity, continued reform momentum, and rapid acceleration of private investment in Saudi Arabia, partially offsetting the impact of slow growth in major trading partners, according to the IMF. But “Oil exporters should manage oil revenues carefully, avoid increasing current spending, and improve budget transparency,” the fund warned in the outlook.

Source: The North Africa Journal May 03, 2023 18:01 UTC