IMF Urges Middle Eastern Governments to Draw-up Rescue Packages in Preparation for an Economic Slowdown
The International Monetary Fund (IMF) has cautioned Middle Eastern governments of the likelihood of a major decline in the regional economic growth, led by a possible slump in Oil Revenues and other disruptions caused by the Coronavirus pandemic.
The IMF's regional director for the Middle East and Central Asia, Jihad Azour stated that the pandemic causes significant economic turmoil in the region through simultaneous shocks such as a drop in domestic and external demand, a reduction in trade, disruption of production, a fall in consumer confidence, and tightening of financial conditions.
The IMF has substantially scaled down growth projections for the region, considering factors such as low oil price trajectory, civil unrest and sanctions imposed on Iran by the United States, in addition to the above.
To address the situation in a timely manner and to minimise the impact of a protracted recession, the IMF has urged Middle Eastern governing authorities to draw-up relief packages.