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World Bank lowers Middle East growth projections for 2019

World Bank lowers Middle East growth projections for 2019

Growth in 2019 expected to be 0.6 per cent, down from previous estimate of 1.4 per cent

The World Bank has trimmed down its growth forecast for the Middle East’s economy.

The region’s economy is expected to grow about 0.6 per cent this year, according to the World Bank – down from its prediction in April of 1.4 per cent growth.

However, the World bank predicts growth in the region will increase to about 2.6 per cent in 2020, and 2.9 per cent in 2021.

According to the World Bank, the growth prediction decline is due to oil production cuts, geopolitical tensions and the ongoing trade war between the United States and China.

The lower growth forecast also comes after the International Monetary Fund (IMF) also lowered its growth expectations. In July, the IMF cut its growth forecast for the global economy to 3.2 per cent.

READ: IMF slashes Oman’s 2019 economic growth forecast to 0.3%

Reasons for the lower growth estimate, according to the IMF, include lower oil production, the US-China trade war, political tensions, and Brexit.

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