Arab economies gain higher growth this year, says IMF report
The Arab economies have recovered from the effects of the global crisis, according to a recent report. This trend is set to continue also in the next year, depending on the world's stabilizing economy. A rebound in oil prices has led to a strong recovery this year in the economies of the Middle East and North Africa (MENA) region, the International Monetary Fund said on Wednesday. GDP growth for MENA is projected to hit 4.1 percent in 2010, compared to 2.0 percent in 2009, the IMF said in its October World Economic Outlook.It also predicted an economic growth of 5.1 percent in 2011.
"The strength of the recent economic recovery in the MENA region is largely underpinned by the rebound in oil prices from their trough in 2009, which has boosted receipts for oil exporters in the region" the IMF said.
The Arab economies also benefited from a "sizeable and rapid fiscal policy response, especially in oil-exporting economies," which had spillover effects on the region's non-oil exporters "due to close trade links between these groups of economies."
MENA comprises oil exporters Algeria, Bahrain, Iran, Iraq, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Sudan, the United Arab Emirates and Yemen, and oil importers Egypt, Djibouti, Jordan, Lebanon, Mauritania, Morocco, Syria and Tunisia.
Oil exporters are expected to see a 3.8-percent growth in 2010 and 5.0 percent in 2011. Oil importers, which grew by 4.6 percent in 2009, will expand by 5.0 percent and 5.2 percent in 2010 and 2011, respectively.
The IMF warned, however, that MENA economies remain vulnerable to any drop in oil prices, and possible heightened economic turbulence in Europe.
- Oman’s Duqm tourist complex moves forward with government approval
- Kuwait fights budget deficit: Reexamining government salaries, expatriate labor
- Tunisian Confederation of Industry, Trade, and Handicrafts fights nationwide unemployment levels
- Construction costs fall in Dubai
- Western tourists flock to Iran, could generate $30B in new revenue