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| Economy |
| Slump of exports hinders growth of oil-rich economies - IMF official |
| 2009-06-18 |
| Deputy Director of the Middle-East and Central Asia Department of the International Monetary Fund (IMF) Amor Tahari attributed on Wednesday the slow of economic growth in the oil-rich countries to the retreat of oil and gas exports. Briefing reporters here on the IMF report on the outlook of the Middle East region, Tahari said it is difficult to predict the future economic tendencies especially those relating to the economies that depend heavily on oil exports. The main indications of the IMF show that the world economy is likely to resume growth in early 2010, he said. The cash flows from the oil-rich countries of the Middle East to overseas investment are pivotal to the world economic recovery as they helped prod demand in the developed economies in 2009, Tahari pointed out. He expected the unemployment and poverty rates in the oil-importing countries in the Middle East and North Africa (MENA) region to keep going up, thus adding to economic and social strains in these countries. The average economic growth rate in countries of the region dropped from 5.7 to 2.6 percent in 2008. These countries need to maintain growth rates ranging between 6 and 7 percent for several successive years in order to alleviate their social and economic strains, he said, noting that a 2 - 2.5 percent growth rate is insufficient. The IMF report, of which KUNA received a copy, predicts that the oil-exporting countries of the Middle East would achieve growth rates ranging between 2.3 and 3.8 in 2010. The IMF officials recommended adoption of good-governance in the financial and economic institutions in the region in order to overcome the current challenges. |
| Posted by:Seafarious |
| #2 Iran probably needs $80-90/brl oil to support its subsidies of consumption, its subsidies to Hezbollah and its other adventures. In some ways, I hope the current regime gets to wallow in its economic problems. |
| Posted by: Lord garth 2009-06-18 09:26 |
| #1 Nymex Crude Future 70.99 Dated Brent Spot 69.58 Can't tell you how glad I am the oil sheiks dodged the poverty bullet. |
| Posted by: ed 2009-06-18 00:44 |