The World Bark has warned Egypt of the impact on the national economy of an increasing bill for wheat imports. At the same time, the bank pointed out that Egypt has weathered the recent oil crisis better than other countries in the Middle East and North Africa (MENA) region.
The World Bank explained, in its most recent report–"Regional economic outlook: MENA Sustaining the recovery in times of uncertainty"–that oil-importing nations such as Egypt, Morocco, Tunisia, Lebanon, Jordan and Djibouti were able to bear the impact of the crisis better than other nations in the Middle East and North Africa.
The bank warned that the rise in food prices poses a threat to all oil-importing nations in the region. According to the report, estimates indicate that monthly imports of wheat in both Egypt and Morocco are the largest in the region, and therefore these countries will face the largest increases in import bills.
The bank noted that economic stimulus packages have helped oil-importing nations withstand the crisis and are supporting the current economic recovery, however, it said, many of these nations are suffering from limited fiscal space–a long-term vulnerability.
The bank's report added that, "With a few exceptions, reforms have broadly remained on track, giving oil importers the opportunity to continue the process of transforming their economies, upgrading their technological capabilities, and improving their competitiveness."
Translated from the Arabic Edition.
