## Regional Economic Outlook Update: Middle East and Central Asia

_Middle East and Central Asia, July 13, 2020_

## Source details

**Canonical URL:** [Regional Economic Outlook Update: Middle East and Central Asia](https://www.imf.org/en/publications/reo/meca/issues/2020/07/13/regional-economic-outlook-update-menap-cca)

## Other formats

- [Markdown version](/en/publications/reo/meca/issues/2020/07/13/regional-economic-outlook-update-menap-cca/index.md)
- [Structured JSON version](/en/publications/reo/meca/issues/2020/07/13/regional-economic-outlook-update-menap-cca/index.json)
- [Bundle manifest](/en/publications/reo/meca/issues/2020/07/13/regional-economic-outlook-update-menap-cca/bundle-manifest.json)

## Bibliographic details
- Published: July 13, 2020
- Series: Middle East and Central Asia

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### Overview and growth projection
- Growth in the region is projected at –4.7 percent in 2020, 2 percentage points lower than in April 2020.
- The region reacted to the global COVID-19 pandemic with swift and stringent measures that have saved lives, but these measures have had a large impact on domestic economic activity.
- Several countries have begun reopening in past weeks, and a recent uptick in activity has occurred; rising infection numbers may pose risks.

### Main shocks and risks
- A sharp decline in oil prices together with production cuts among oil exporters.
- Disruptions in trade and tourism.
- Unusually high level of uncertainty regarding:
  - the length of the pandemic,
  - its impact on firm closures.
- Downside risks include social unrest and political instability.
- Potential renewed volatility in global oil markets dominates the outlook.

### Policy priorities and recommendations
- Immediate priority: ensuring strong health systems.
- Support the recovery and set up resilient and well-targeted social safety nets.
- As the pandemic wanes:
  - facilitate recovery by easing the reallocation of workers and resources, as needed,
  - resume gradual fiscal adjustment and rebuilding policy buffers.
- Multilateral support can play a key role in helping countries surmount these shocks.

*Regional Economic Outlook Update: Middle East and Central Asia — July 2020*

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## Content in this bundle

- **July 2020 Regional Economic Outlook Update: Middle East and Central Asia**
  - [July 2020 Regional Economic Outlook Update: Middle East and Central Asia (Markdown version)](/-/media/files/publications/reo/mcd-cca/2020/update/july/english/mreoeng202007.pdf.md){rel="alternate" type="text/markdown"}
  - [July 2020 Regional Economic Outlook Update: Middle East and Central Asia (PDF)](/-/media/files/publications/reo/mcd-cca/2020/update/july/english/mreoeng202007.pdf){rel="external" type="application/pdf"}

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## References

- [Five Charts That Illustrate COVID-19’s Impact on the Middle East and Central Asia](https://www.imf.org/en/news/articles/2020/07/14/na071420-five-charts-that-illustrate-covid19s-impact-on-the-middle-east-and-central-asia)
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_Source: https://www.imf.org/en/publications/reo/meca/issues/2020/07/13/regional-economic-outlook-update-menap-cca_