- The MENA region is set to witness accelerating economic growth in the near term: real GDP growth at 5.2% in 2022 and 4.6% in 2023.
- Global supply chain disruptions, coupled with persistently high energy prices, are likely to trigger upward pressures on consumer prices, more so in energy-importing MENA economies.
- With inflation remaining more or less contained and the US Federal Reserve not hiking key policy rates before late 2022 (although we acknowledge risks of an early lift-off), we do not expect a shift in monetary policies in the region in the near future.
- The MENA region is heavily exposed to water stress risks. Water scarcity is endangering the development of water-intensive sectors and threatens the economic diversification of net energy exporters in the region.
- State failure to address water supply issues threatens to become a major source of civil unrest; water scarcity will be an important trigger for regional conflicts.
For further details see:
Water: The Dilemmas MENA Governments Are Facing