IMF Expects Gulf Arab Economies To Expand 5.2% In 2010

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Sunday, the International Monetary Fund said the Gulf Cooperation Council is set to grow at a much slower pace of 0.7% this year after expanding 6.4% in 2008. The IMF expects GCC to grow 5.2% next year. The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

According to the latest Regional Economic Outlook: Middle East and Central Asia, non-oil GDP growth for oil exporters of the Middle East, North Africa, Afghanistan, and Pakistan or MENAP is seen at 3.2% in 2009 on strong countercyclical macroeconomic policies. The oil exporters are six nations of the Gulf Cooperation Council and Algeria, Iran, Iraq, Libya, Sudan, and Yemen.

The fund noted that MENAP oil exporters were directly affected by the global financial crisis through a sharp drop in oil prices, a contraction in the global economy, and a sudden drying up of capital inflows.

Looking forward, higher oil prices, a revival of global demand, and continued government spending will provide the basis for stronger growth in 2010, the Washington-based fund said.

The global crisis has severely impacted the Caucasus and Central Asia or CCA, with growth for the region projected to drop to 1.5% in 2009 from 6.6% in 2008. A modest recovery for the CCA as a whole is expected in 2010, said IMF.

Sunday, the International Monetary Fund said the Gulf Cooperation Council is set to grow at a much slower pace of 0.7% this year after expanding 6.4% in 2008. (Market News Provided by RTTNews)