The European Bank for Reconstruction and Development (EBRD) has forecasted an economic growth in the Mediterranean region of 66 per cent in 2021 to 2.9 per cent in 2022, according to their latest report. The impact on the region of the war in Ukraine is being felt through higher consumer prices for oil and food, with significant spill overs for public budgets and food security.
Therefore, inflation has risen in 2022 and pressures on foreign reserves have increased.
The impact on tourism has varied but, overall, it has weighed on the recovery in most economies of the region. Moreover, supply chain disruptions have implications for the region’s more export-reliant economies, notably Morocco and Tunisia, both of which are affected by slowing demand from Europe.