|
 |
News |
 |
|
| |
Email this article |
 Printer Friendly Version
|
| |
Mideast growth to slide |
| |
12/10/2008 9:29:29 AM |
| |
|
| |
| |
A further decline in oil prices and the global financial crisis are expected to take their toll on the economies of the Middle East and North Africa (Mena), reducing GDP growth to 3.9 per cent in 2009 from 5.8 per cent in 2008, according to a World Bank report.
While a rise in oil and natural gas revenues to $200 billion (about Dh730 billion) helped drive growth in oil-dominant economies in 2008, next year might not be so rosy for the region, said the report, a copy of which was obtained by Gulf News.
While the UAE's GDP growth is expected to slow as well, it is expected to remain above 6-7 per cent, according to the UAE Ministry of Economy, much above the growth rates predicted elsewhere in the Mena region.
"With oil exporters facing diminished revenues in 2009 due to sharply lower oil prices, Mena regional growth is expected fall to 3.9 per cent in 2009," the World Bank said in the latest edition of its Global Economic Prospects - a half-yearly report, released yesterday. "Growth among the oil exporters as well as the diversified economies is anticipated to fall to about 4 per cent in 2009."
Quick recovery possible
The report said a quick recovery in 2010 is possible, depending on how fast oil prices are pushed up to a so-called 'fair' price of $65 (about Dh235) to $75 (about Dh273) per barrel.
The region's oil producers are expected to push for a cut in oil production at the Opec meeting on December 17 to lift falling oil prices from the lowest $39 per barrel to $75, which the oil producers consider a 'fair' price.
Next year oil prices are expected to average about $75 a barrel and food prices worldwide are expected to decline by 23 per cent compared with their average in 2008, it says. "Recovery in 2010, predicted upon a quick resolution of the fin-ancial crisis in high-income countries and a moderate revival of OECD growth, would see GDP pick up to 5.2 per cent," it said.
However, a very gradual buildup in global oil demand is likely to restrain GDP gains among the oil-exporting countries to 5 per cent in 2010, it cautions.
Justin Lin, World Bank chief economist and senior vice-president for Development Economics, said, "People in the developing world have had to deal with two major external shocks - the upward spiral in food and fuel prices followed by the financial crisis, which has eased tensions in commodity markets but is testing banking systems and threatening job losses around the world." |
| |
Source: Zawya.com |
news |
| |
Email this article | Printer Friendly Version |
|
 |
| |
|
|
|
| Current Events |
 |
|
| DubaiGetaway |
 |
|
| Featured Links |
| |
|
|
|
