IMF sees bumper year for Arab oil producers

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IMF sees bumper year for Arab oil producers
28 Apr 2022
5 min read

News Synopsis

According to a report issued by the International Monetary Fund, the economy of the World is predicted to increase at a rate of 3.6% this year, but Arab oil exporters are witnessing a massive growth from increased energy prices that will boost their economies and replenish their financial reserves this year and next. However, countries that are hard hit in the Middle East are oil importers and countries like Egypt that depend heavily on food imports from the Black Sea region, where the ongoing Russian-Ukraine conflict has severely affected exports like sunflower oil, barley, and wheat around the globe.

The Russian invasion of Ukraine has caused wheat prices to skyrocket as farmers in Ukraine stopped farming or have been unable to export their commodities due to blocked ports and roads. On the other hand, increased energy prices, showered the region's oil producers, like Saudi Arabia with immense wealth where economic growth is expected to reach 7.6% this year.  Another nation highly dependent on oil revenue, Kuwait is estimated to witness 8% growth in the year 2022. The IMF's figures estimate that Iraq will see the biggest expansion of its economy in the region, with 9.5% growth projected this year.

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