IMF: MENA Region Recovering with 4.5% Growth in 2010

 

The Middle East and North Africa region is growing out of its downturn at a good speed. Economic prospects across the region are quite diverse, shaped by different constellations of underlying forces, stated the International Monetary Fund (IMF) in its latest report “World Economic Outlook”.

There are several factors moulding the shape of the MENA region’s recovery. Pushing it forward are at least two forces. First, higher commodity prices and external demand are boosting production and exports in many economies in the region. Second, government-spending programs are playing a key role in fostering the recovery. In some economies, vulnerable financial sectors and weak property markets are holding it back (Kuwait, United Arab Emirates). The sluggish recovery in Europe is putting a damper on export growth, workers’ remittances, and tourism revenues in other parts of the MENA region (Morocco, Tunisia), although the latest data suggest that these flows are gradually improving.

Considering these and other factors, GDP in the Middle East and North Africa is projected to grow at 4½ percent in 2010, edging up to 4¾ percent in 2011. As in other regions, recovery prospects vary substantially across MENA economies…read more