Los Angeles 10/6/2010 10:54:36 PM
News / Finance

Middle East Economies Recovery Well: IMF

The MENA region, the Middle East and North Africa, is recovering strongly according to IMF statements Wednesday. The strength of the economies’ recovery lies in the rebound in the price of oil after it dipped severely in 2009. The IMF also credited "sizable and rapid fiscal policy response, especially in oil-exporting economies, has played a substantial role in supporting the nonoil sector in these economies."

The positive position for MENA was outlined in the bi-annual World Economic Outlook published by the IMF, who also said that the policies have spilled over into oil-importers in the region, however fiscal expansion in these countries was more moderate.

MENA economies are also predicted to increase in size by a combined 4.1% in 2010 and by 5.11% in 2011. Country-by-country, the IMF predicted that Qatar will expand by 16% in 2010, the highest in MENA. The UAE is expected to grow by 2.4%, an upgrade from the previous Outlook, published in May this year. They also added that "Supported by sizable government infrastructure investment, real activity in Saudi Arabia is expected to grow at 3.4% in 2010 and 4.5% in 2011."

The report also detailed growth rates higher over the next two years for oil exporting countries, as compared to the outlook in 2009. While they say that the oil prices will have rallied, and should stay higher than 2009, increases are expected to be moderate, not stellar. This is a key medium-term objective for countries in the MENA region according to the IMF, raising growth potential even further.