Photo: Daniel Heuer/AFP
Eurasia
20/10/2025 21:42
Speaking at a press briefing in Washington on the sidelines of the IMF–World Bank Annual Meetings, Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, said countries across the region had shown “remarkable flexibility” in confronting external shocks. The IMF’s latest Regional Economic Outlook report forecasts accelerating growth supported by non-oil sectors, sound fiscal management, and ongoing structural reforms.
Azour described the current moment as a “period of reassessment” following the ceasefire in Gaza, urging governments to turn stability into inclusive, job-creating growth. He cited Egypt and Jordan as examples of economies maintaining financial stability despite exposure to nearby conflicts.
Gulf Cooperation Council (GCC) states continue to lead in diversification, Azour noted, crediting Saudi Arabia, the UAE, and Qatar for their advances in technology, tourism, and renewable energy. Their prudent fiscal policies, he said, have bolstered banking stability and kept debt levels low.
Egypt was singled out for “notable improvement” under its IMF-supported reform programme. Inflation is projected to drop to 11.8 percent next year, while growth is forecast at 4.3 percent in FY 2024/25 and 4.5 percent in FY 2025/26. Despite lower Suez Canal revenues and weaker tourism due to the Gaza conflict, Egypt has demonstrated strong adaptability, Azour said.
Regionally, growth is expected to rise from 2.1 percent in 2024 to 4 percent in 2025, with oil exporters benefiting from higher production and oil-importing countries such as Morocco and Tunisia recovering steadily. The Caucasus and Central Asia are projected to grow by 4.4 percent.
Azour cautioned that inflation remains elevated in some economies and urged continued reform to strengthen governance, transparency, and innovation. “The region has all the ingredients to be a key driver of global growth in the coming years,” he concluded.
