MENA stays on economic course for 2022

Regional Views
MENA 2022 Economic & Geopolitical outlook

The first case of the COVID-19 Omicron variant was detected almost six weeks ago, reminding us that pandemic-related disruption is far from over. Yet if the initial data is an indicator of what to expect, the new variant is unlikely to rattle markets as much as we first feared. This week, we cover how: 

  • Amid skyrocketing cases, the COVID-19 Omicron variant threatens to dampen regional recovery prospects, but its impact is unlikely to rattle markets to the same extent as previous waves.

  • Although oil price volatility remains a downside risk, global demand is still on track to surpass pre- pandemic levels in 2022.

  • Elsewhere, the region is likely to be gripped by familiar political woes. Expect the start of 2022 to be marked by turgid negotiations, electoral delays, fragile government handovers and popular protests.

 

 

Florence Eid-Oakden, Ph.D, Chief Economist

Leila Lajevardi, Analyst

The Regional Views series are thematic papers aimed at identifying and analysing factors behind medium to long-term economic trends shaping the region. Our analysis draws conclusions that help businesses and investors get ahead of the curve. As a firm staffed by Middle Easterners, we focus on insight rather than standard analysis.

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