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FINANCIAL NEWS
IMF: MENA oil exporters to see strong recovery this year
26 May 2010
(MENAFN) The International Monetary Fund (IMF) said that oil exporters in the Middle East and North Africa (MENA) region would see strong recovery this year, pushed by increasing capital inflows and oil prices, AP reported.
The IMF said MENA oil exporters are projected to see a combined growth rate of 4.2 percent, down slightly from the 4.5 percent growth the fund had projected last month in its World Economic Outlook. Since that reportÂ’s release, oil prices have plunged over 20 percent amid concerns that EuropeÂ’s debt crisis could weaken the global economic recovery currently under way.
In the report, the IMF also warned that concerns remained about the banking sector in these nations, mainly stemming from slow credit growth.
IMF Middle East and Central Asia Director, Masood Ahmed, said that the region’s growth is gathering momentum in 2010, helped by the rise in capital inflows and recovery in domestic consumption. However, this positive perspective is clouded by some concerns in the banking system and sluggish credit activity across the region, he said.
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