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FINANCIAL NEWS
MEA’s 2012 economic growth to slow to 4%
21 Dec 2011
(MENAFN) Fitch Ratings said that next year, economic growth in the Middle East and Africa (MEA) region would be forecasted to fall to 4 percent, compared with 5 percent in 2011, reported Emirates 24/7.
The firm added that countries in the region had Stable Outlook, excluding Egypt (BB), Tunisia (BBB-) and Lesotho (BB-), and the three with Negative Outlooks, adding that the reason for the region’s relative resilience was in part to the limited expected impact on commodity prices, mainly oil.
It also said that the oil market would stay tight and increasing political risk centered on Syria and Iran, would be another major factor to keep prices high, in spite of slower growth in demand.
It is worth noting that non-oil growth in Saudi and Kuwait will continue through strong oil revenues and government balance sheets that will allow the countries to maintain strong infrastructure programs.
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