In the years 2023 and 2024, the economic advancement of Western Asia is projected to decelerate, according to a statement from the United Nations Information Centre in Beirut.
The statement, which referenced the UN World Economic Situation and Prospects (WESP) 2023 report, forecasts that Western Asia’s GDP growth will decline from 6.4% in 2022 to approximately 3.5% in 2023 and 3.4% in 2024.
“Leading crude oil producers, such as the member nations of the Gulf Cooperation Council and Iraq, witnessed swift economic growth owing to elevated oil prices and a substantial rise in crude oil output,” it remarked.
However, the growth patterns are anticipated to differ in 2023 due to the surge in commodity and food prices instigated by the conflict in Ukraine, it added.
“Non-oil-producing countries in the region predominantly faced negative terms-of-trade repercussions from the commodity price surge, resulting in hindered growth,” the UN statement highlighted.
While domestic consumption is expected to recover gradually, external economic circumstances, including access to international finance, are likely to remain constrained, hindering growth opportunities, as per the statement.
“The currencies of the region, including those pegged to the U.S. dollar, will continue to encounter strain, compelling them to uphold strict monetary policies.
The impending global economic downturn may reduce demand for crude oil and negatively impact the oil-producing economies within the region,” it cautioned. (Xinhua/NAN)
