Economic Snapshot for MENA
June 8, 2022
MENA GDP forecast to slow in 2022
In 2022, regional price growth should slow from 2021, although this is mainly on reductions in the extremely elevated inflation rates of Iran, Lebanon and Yemen. Most countries will actually experience higher inflation this year due to stronger GDP growth and higher food and fuel prices. Extreme weather and potential food shortages due to war in Ukraine are upside risks.
Inflation to ease this year
Many regional central banks manage currency pegs and lack independent monetary policies. As such, most banks with pegs hiked rates in May in line with the Fed’s hike. Among those with independent policies, the central banks of both Egypt and Israel also hiked rates in May to tame inflation. Interest rates are set to rise further later this year.
5 years of Middle East & North Africa economic forecasts for more than 30 economic indicators.
Middle East & North Africa Economic News
June 2, 2022
The OPEC oil basket traded at USD 113.9 per barrel on average in May, up 7.7% from the prior month.
June 1, 2022
The Bank of Israel’s Composite State of the Economy Index grew 0.18% month-on-month in seasonally-adjusted terms in April (March: +0.09% mom).
May 24, 2022
The Bank Hapoalim/IPLMA Manufacturing Purchasing Managers’ Index (PMI) rose to 51.2 in April from March's 47.4.
May 23, 2022
At its 23 May meeting, the Bank of Israel (BoI) raised the policy rate from 0.35% to 0.75%—the highest level since 2014. The decision to tighten policy was driven by inflation, which has moved further above the Central Bank’s 1.0–3.0% target range in recent months, spurred by higher international commodity prices.
May 19, 2022
At its monetary policy meeting on 19 May, the Central Bank of Egypt (CBE) increased all of its key rates by 200 basis points, bringing the overnight deposit, the overnight lending and main operations rates to 11.25%, 12.25% and 11.75%, respectively.
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