In 2023 and 2024, Western Asia’s economic growth is anticipated to slow down, according to a press release from the United Nations Information Centre in Beirut.
According to the press release, which cited the UN World Economic Situation and Prospects (WESP) 2023 report, Western Asia’s GDP growth is anticipated to slow from 6.4% in 2022 to about 3.5% in 2023 and 3.4% in 2024.
“Major crude oil producers, including the member countries of the Gulf Cooperation Council and Iraq, experienced rapid economic expansion due to high oil prices and a significant increase in crude oil production,” it said.
But the growth trends are expected to diverge in 2023 because of the commodity and food price spike triggered by the conflict in Ukraine, it added.
“The region’s non-oil-producing countries primarily suffered the adverse terms-of-trade impact of the commodity price spike, with growth taking a toll,” the UN press release noted.
While domestic demand is projected to recover steadily, external economic conditions, including terms of access to international finance, are expected to remain tight, limiting growth prospects, according to the release.
“The region’s currencies, including those pegged to the U.S. dollar, will remain under pressure, forcing them to maintain tight monetary stances.
The looming global economic slowdown may weaken demand for crude oil and adversely affect the oil-producing economies in the region,” it warned. (Xinhua/NAN)