IMF urges action to face 'big drop' in Mideast growth

The International Monetary Fund called for urgent action from Middle East governments Tuesday as the coronavirus pandemic threatens a persistent slump in oil revenues and a "big drop" in growth.

The International Monetary Fund said a dozen Middle East and North African countries had already approached it for financial support.

It urged governments across the region to swiftly draw up rescue packages to head off a protracted recession.

"The region is likely to see a big drop in growth this year," the IMF's regional director for the Middle East and Central Asia, Jihad Azour, said in a report.

The IMF had already substantially cut its growth projections for the region over low oil prices, civil unrest and US sanctions against Iran.

The coronavirus pandemic has triggered a 50 per cent fall in oil prices that has slashed government revenues across the region.

"The coronavirus pandemic has become the largest near-term challenge to the region," Azour said.

"The pandemic is causing significant economic turmoil in the region through simultaneous shocks -- a drop in domestic and external demand, a reduction in trade, disruption of production, a fall in consumer confidence, and tightening of financial conditions."