The economy of the Middle East and North Africa region will witness its biggest slump in four decades amid the global coronavirus pandemic and historic declines in oil prices, according to a new report from the International Monetary Fund. 

The Washington-based lender forecasts the economic impact of the coronavirus will be substantial and long-lasting, with the economy of the Middle East, North Africa and Central Asia expected to contract by an average of 3.1% in 2020. In a region that has so far recorded more than 172,000 cases of the virus, the IMF called on governments to spend what’s necessary, regardless of fiscal space, to save lives. 

"While there is considerable uncertainty around the depth and duration of the crisis, this pandemic will compound the region's unemployment problem and worsen the already high public and external debt," the IMF said in its latest Regional Economic Outlook. 

“At the same time, restrictive containment measures introduced by governments in the region and fear of contagion are weakening the region’s consumer demand, particularly in tourism, hospitality, and retail sectors.”