North Africa's Oil Hopes Dim Amid IMF Growth Downgrade, Global Uncertainties

The International Monetary Fund (IMF) has slashed its economic growth forecast for the Middle East and North Africa (MENA) region to 2.6% in 2025, down sharply from its earlier projection of 4%, highlighting the growing risks facing oil-driven economies amid geopolitical tensions, faltering global demand, and weaker oil prices.

- By Our Reporter

In its latest Regional Economic Outlook released in Dubai, the IMF painted a picture of diverging fortunes across MENA. While oil-exporting Gulf Cooperation Council (GCC) nations are poised for modest gains, North Africa and other non-GCC oil producers face a steeper climb, stymied by delayed reforms, fragile investment climates, and slow recoveries in oil production.

"The region is grappling with multiple layers of uncertainty - from global trade disruptions and oil price volatility to internal conflicts and hesitant reform momentum," said Jihad Azour, the IMF's director for the Middle East and Central Asia.

North Africa: Rich in Potential, Short on Reform