An Oil-Price Test for MENA Governments
In recent years, Middle Eastern and North African countries have been weaning consumers off domestic energy subsidies, while modernizing and diversifying their economies. With oil prices recovering, however, there is a risk that these countries will revert to their old wasteful spending habits.
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WASHINGTON, DC – Since January 2016, when oil prices ended a sharp two-year slide, the price of crude has more than doubled. As a rule, higher prices are bad for oil-importing countries and good for oil producers. But, in the Middle East and North Africa (MENA), the recent price rebound presents a critical test for importers and producers alike. The outcome will determine the region’s future economic trajectory.