Food price inflation will weigh heavily on the Middle East and North Africa (MENA) this year, causing growth to slow by nearly three percent from 2022, the World Bank said Thursday.
Its new projection was a downward revision to the 3.5 percent growth rate for 2023 in its October report.
The regional report was compiled before surprise OPEC+ oil output cuts were announced earlier this week, which have driven up oil prices and price expectations, and the World Bank said its forecast did not incorporate any impact from that decision. It also warned that deteriorating nutrition resulting from high food prices would have long-lasting impacts on child development and future prospects in the region.
“Bold policies are needed in a region where young people make up more than half of the population,” said World Bank MENA Vice President Ferid Belhaj.
The international financial institution said it sees MENA’s GDP per capita growth – a proxy for living standards – slowing to 1.6 percent in 2023 from 4.4 percent the year prior.
MENA economies vary widely between high-income oil exporters of the six-nation Gulf Cooperation Council (GCC), conflicted countries such as Yemen, developing oil importers including Jordan and Lebanon, and developing oil exporters like Algeria and Iraq.
The impact of higher food prices is estimated to increase the risk of childhood stunting by up to 24 percent in developing MENA countries – equal to as much as 285,000 newborns at risk, the report said.
“Close to one out of five people living in developing countries in MENA is likely to be food insecure this year,” said World Bank MENA Chief Economist Roberta Gatti.
Source : i24news.tv
