Middle East & North Africa

Uncertainty was pervasive in the Middle East and North Africa (MENA) in 2019, reflecting ongoing conflicts and their regional spillover effects, global trade tensions, and fluctuating oil prices. These problems continue to pose significant challenges, and as a result regional economic output (GDP) growth slowed in 2019 and is expected to have fallen to less than 1 percent. Lower oil prices have disrupted oil exporters’ plans to diversify away from oil because they now lack the funds to invest in new sectors. Despite the lower prices, however, several oil-importing countries, including Egypt, Jordan, Lebanon, and Sudan, have exceeded the threshold for public debt that is considered sustainable for emerging markets. This is limiting both public and private investments in these countries.