The European Bank for Reconstruction and Development (EBRD) is raising its growth forecast for the southern and eastern Mediterranean (SEMED) region to 4.2 per cent for 2021, according to its latest Regional Economic Prospects (REP) report.
The recovery in economic activity has started in most economies of the SEMED region, the report says, and is mainly driven by a rebound in the agriculture and telecommunications sectors as well as limited growth in tourism and exports.
The future economic rebound will depend on the strength of the global recovery, progress in the vaccination rollout, political developments and the implementation of reforms to the business environment. The EBRD report names increasing competition, improving governance, combating corruption, advancing digitalisation and promoting inclusion as key steps to attracting investors.
For 2022, output in the SEMED region is expected to grow by 4.4 per cent, reflecting a strong pickup in economic activity, notably in Egypt and Morocco.
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