IMF Downgrades MENA, Saudi Growth; Is It Enough?

The IMF revised down its MENA and global growth forecasts. Like the World Bank it has been too timid.

The IMF, in its 19 January update to its World Economic Outlook (WEO), revised down its projections for global, MENA and Saudi growth for 2016.

But, as with the World Bank’s similar forecasts earlier this month (MEES, 15 January), the IMF’s oil price assumptions are already way out of date, and as a result its MENA economic forecasts way optimistic.

The IMF has chopped 1 percentage point from its Saudi growth projections for 2016 and 2017, compared to those it made in the October 2015 edition of its six-monthly World Economic Outlook, its flagship publication (while the bulk of by-country forecasts are only revised in the main six-monthly report released in April and October, those for key countries and regions receive 3-monthly interim revisions). (CONTINUED - 669 WORDS)