The World Bank has predicted a sharp slowdown in economic growth for the Middle East and North Africa in 2023, down to 1.9%, compared to growth of 6% in the previous year, according to a report issued by the Bank on Thursday, October 5, 2023.

The World Bank clarified that the economic slowdown in the region's countries is due to reduced oil production, amid falling oil prices compared to 2022 levels, tightening global financial conditions, and rising inflation, as reported by Anadolu Agency.

The World Bank also anticipated in its report that the decline in growth in the Middle East and North Africa this year would be more pronounced in the oil-exporting Gulf Cooperation Council countries.

The report estimated that the real GDP growth for Gulf countries would only reach 1% in 2023, down from 7.3% in 2022, due to reduced oil production and also falling prices.

Regarding oil-importing countries in the region, the report indicated that global financial conditions and high inflation rates continue to hinder economic activity. It predicted that the growth rate for oil-importing countries would be about 3.6% this year, down from 4.9% in 2022.

These results indicate the end of the "story of disparity between the region's countries, as they have become more like two regions"; since 2022, oil-exporting countries in the region have been growing at a much faster pace than those importing oil.

Commenting on the report, Farid Belhaj, Vice President of the World Bank for the Middle East and North Africa, said: "If the region is growing at a slow pace, how will it provide decent job opportunities for around 300 million young people who will be entering the labor market by 2050?"

Belhaj added, according to the report: "Without implementing sound reforms at the policy level, the chronic structural challenges facing labor markets in the region may worsen in the short term... Now is the time for reform."