Shorouk Express
BAKU, Azerbaijan, October 17. The economic
outlook for the Middle East, North Africa, Afghanistan, Pakistan
(MENAP), and the Caucasus and Central Asia (CCA) remains broadly
positive, though challenges persist, said Jihad Azour, Director of
the Middle East and Central Asia Department at the International
Monetary Fund (IMF), during a press briefing, Trend reports.
“Inflation, however, remains mixed, easing in most MENA
economies and Pakistan, but accelerating and still elevated in many
CCA countries due to robust demand and important price pressures,”
Azour said.
He noted that in the MENA region and Pakistan, growth should
continue to strengthen, supported by reforms and resilient domestic
demand. In contrast, in the Caucasus and Central Asia, growth is
expected to moderate to a more sustainable pace, while inflation
gradually declines.
Azour cautioned that “downside risks remain significant,” citing
recent shocks and ongoing global uncertainty that could undermine
demand or lead to tighter global financial conditions. “Persistent
inflation and concerns about fiscal sustainability in advanced
economies could raise borrowing costs, especially for countries in
our regions with large financing needs,” he warned.
He also emphasized that the region remains exposed to
geopolitical tensions and climate-related shocks, which could
disrupt economic activity. Still, on the upside, “faster progress
toward peace and reforms could yield stronger and more inclusive
growth,” Azour added.
Turning to policy recommendations, Azour outlined three key
priorities to sustain growth and strengthen resilience. “Countries
should first enhance fiscal frameworks to ensure long-term
sustainability, second, reinforce monetary policy credibility to
anchor inflation expectations, and third, accelerate structural
reforms to diversify economies, empower the private sector, and
attract investment that creates jobs,” he said.
In conflict-affected countries, he stressed the importance of
rapid macroeconomic stabilization, rebuilding institutions, and
securing external support to enable recovery.
“Beyond immediate risks, advancing reforms that promote good
governance, regional integration, and equal opportunity –
especially for youth and women – will help transform today’s
resilience into lasting prosperity,” Azour stated.
Reaffirming the IMF’s commitment to the regions, Azour
highlighted that since early 2020, the Fund has approved nearly $56
billion in financing for countries across MENAP and CCA. In
addition, the IMF has delivered over 385 capacity development
projects across 31 countries, totaling $36.8 million in fiscal
years 2024 and 2025.
“The IMF remains a strong partner to our members through policy
advice, financing, and capacity development,” he concluded.
