A war in Ukraine will sharply reduce economic growth in the Central Asian region in 2022, but higher oil prices will partly soften the blow to the Middle East and North Africa, the International Monetary Fund said, Reuters reported.

However, both regions will feel the impact of rising commodity prices, the IMF said, warning that higher wheat prices alone could raise the Middle East and Central Asia's combined external financing needs by up to $10 billion.

The war in Ukraine will be the dominant factor shaping the outlook, exacerbating global headwinds due to faster-than-expected monetary policy normalization in advanced economies, a slowdown in China and a protracted pandemic, the report said.

Growth in the Caucasus and Central Asia is projected to slow to 2.6% in 2022 from 5.6% in 2021 due to close trade and financial ties with Russia, dependence on remittances and tourism, and secondary exchange rate effects and cross-border payments.

Even in oil-producing Azerbaijan, economic growth will slow to 2.4% in 2022 from 4% last year, according to the IMF, as it depends on tourism from Russia and Ukraine and wheat and fertilizer imports from the two countries.

Inflation in Central Asia is estimated at 10.7% as a result of currency depreciation and rising commodity prices.

The recovery will lose momentum for oil importers with a cross-country divergence, while most countries will also continue to struggle with elevated inflation.

Growth for the Middle East and North Africa (MENA) is projected at 5% compared to 5.8% in 2021. In the six oil-producing Arab states of the Persian Gulf, growth is forecast to accelerate to 6.4% from 2.7% last year.

Inflation in MENA is expected to remain high at 13.9% due to higher food and energy prices and, in some cases, depreciation of the exchange rate and weak monetary and fiscal policies.

Regional oil importers such as Lebanon and Tunisia are being hit by higher commodity prices and tightening financial conditions, fueling inflation and worsening external and fiscal accounts.

But oil and gas exporters will benefit from higher energy prices that more than offset the impact of tightening financial conditions and lower tourism revenues, the IMF said.

Last month, global benchmark Brent hit $139 a barrel, its highest level since 2008, but prices have eased in recent weeks on rising concerns.

The April IMF report suggests that the average oil price in 2022 will be $106.83 per barrel.

The IMF earlier this month raised its economic growth forecast for Saudi Arabia, the largest oil exporter, to 7.6% in 2022, citing higher oil production and prices from 3.2% in 2021. His previous forecast was 4.8%. The kingdom's economic growth is forecast to slow to 3.6% in 2023.