IMF Revised its Forecasts for Asia and Middle East

The International Monetary Fund (IMF) revised its growth forecasts for the Middle East and Central Asia as economies were affected by worse than expected oil crisis and Covid-19 pandemic, according to Reuters.

The region, which includes about 30 countries from Mauritania to Kazakhstan, will see real GDP drop by 4.7% this year, two points less than IMFs forecast in April.

The pandemic hit the tourism and trade sectors, while low oil prices put pressure on the financial resources of regional oil exporters.

The fund estimates that Gulf energy producers will see real GDP drop by 7.1% this year, down from April’s forecast of a nearly 3% drop, but just below the 7.6% contraction that the IMF expected at the end of June.