News

IMF warns of uneven Mideast recovery with lopsided vaccine rollout

February 4, 2021 06:29 PM


Economic recovery in the Middle East and North Africa is expected to accelerate this year following a double whammy shock, but growth will be uneven due to unbalanced access to the coronavirus vaccine, the IMF said. 

The region -- which includes all Arab countries and Iran -- suffered one of its worst economic performances last year due to lower oil prices and sweeping lockdowns to prevent the spread of the coronavirus. 

But while the region's economy shrank by 3.8 percent in 2020, the International Monetary Fund expects growth of 3.1 percent this year and 4.2 percent next year amid a rebound in oil prices and the roll out of vaccines. 

"This year we expect a recovery after the year 2020 that was a year like no other where the region faced one of the most severe dual shocks," Jihad Azour, director of the Middle East and Central Asia Department at the IMF, told AFP. 

"Of course, we are in a period of high uncertainty and the race between the virus and the vaccine will define the recovery pace. And this recovery pace will vary between countries depending on access to the vaccine."

Many countries in the region haven't launched vaccination campaigns yet due to worldwide shortages, internal conflicts and weak finances. Wealthy Gulf states were among the first to start turbocharged programs. 

The UAE and Bahrain have administered two of the fastest per capita deliveries in the world. 

"Currently, we are seeing a great divergence between countries. Those who are among the front runners worldwide in terms of vaccination, like UAE and Bahrain, will have a faster recovery than those who are lagging," said Azour. 

"Therefore it's a recovery that is uneven and uncertain." 

After a 4.8 percent contraction in 2020, oil-rich Gulf states are expected to grow by 2.5 percent this year, according to the IMF. 

Saudi Arabia, the biggest oil exporter and largest Arab economy, is tipped to expand by 2.6 percent this year following negative growth of 3.9 percent in 2020.

 

 



Most Read

  1. Foreigners safe after suicide-bomber targets their van in Karachi Foreigners safe after suicide-bomber targets their van in Karachi
  2. Finance minister rules out further rupee devaluation Finance minister rules out further rupee devaluation
  3. Mehar Bano and Mamya Shajaffar’s bold dance videos invite public's wrath Mehar Bano and Mamya Shajaffar’s bold dance videos invite public's wrath
  4. Iran shoots down several drones as Israel ‘launches’ attacks Iran shoots down several drones as Israel ‘launches’ attacks
  5. Woman gives birth to sextuplets in Rawalpindi Woman gives birth to sextuplets in Rawalpindi
  6. Solar panel rate sinks massively in Lahore Solar panel rate sinks massively in Lahore

Opinion

  1. Insights into the Pakistan Stock Exchange's Recent Record High Triumph
    Insights into the Pakistan Stock Exchange's Recent Record High Triumph

    By Zulfiqar Ali Mir

  2. IMEC to sabotage CPEC
    IMEC to sabotage CPEC

    By Dr Asif Channer

  3. 1947 TO FORM 47
    1947 TO FORM 47

    By Dr Asif Channer

  4. Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....
    Beijing wants to further highlight industrial sector in its country and take scientific innovation to new heights....

    By Ali Ramay

  5. Global race: China will reduce its unnecessary expenses
    Global race: China will reduce its unnecessary expenses

    By Ali Ramay

  6. Channer Pir: The Great Saint of Cholistan
    Channer Pir: The Great Saint of Cholistan

    By Dr Asif Channer