Arab Spring economies to recover slowly in 2013

// News | General | Arab Spring economies to recover slowly in 2013
Email to a friend Plain text Print version // Font size: Decrease font Enlarge font

Most economies hit by the Arab Spring uprisings will recover slowly next year, grappling with high inflation and rising unemployment due to poor global conditions, the International Monetary Fund predicted in a report on Sunday.

In its twice-yearly outlook for the Middle East and North Africa, the global lender said a partial return of political stability could permit somewhat faster growth in the combined output of Egypt, Jordan, Morocco, Libya, Tunisia and Yemen during 2013.

But weak demand in Europe and other regions will weigh on the Arab Spring states, it said. In many of those countries, exports are shrinking and have not yet bottomed out, it added.

“Growth is expected to remain below long-term trends, and unemployment is expected to increase owing to continued anaemic external demand, high food and fuel commodity prices, regional tensions and policy uncertainty.”

Reuters reports that the IMF forecast gross domestic product in the countries excluding Libya would expand by 3.6 per cent next year, accelerating from an estimated 2.0 per cent this year and 1.2 per cent in 2011. In 2010, the year before the uprisings, GDP grew  by 4.7 per cent.

Because of sluggish global demand, the group’s current account balance of trade in goods and services will improve only marginally next year, to a deficit of 4.6 per cent of GDP from this year’s 5.4 per cent deficit, the IMF predicted.

It suggested some countries should consider allowing greater flexibility in their exchange rates – code for permitting their currencies to depreciate – in order to stimulate exports, but did not specify which countries.

Weaker currencies could fuel inflation, which the IMF forecast would rise to 8.6 percent for the group next year, the highest level since 2008, from 7.8 per cent this year.

Inflation is expected to rise in Egypt and Morocco as they try to curb their large budget deficits by scaling back food and fuel subsidies, the IMF said.

Libya, which ousted its dictator Muammar Gaddafi last year, is a spectacular exception to the pattern of slow recovery because of its oil wealth. Oil output is returning to its pre-civil war level faster than expected.

The country’s GDP shrank  by 60 per cent last year but is expected to rise  by 122 per cent this year, 17 per cent in 2013 and seven per cent annually on average between 2014 and 2017, assuming the domestic security situation improves, the IMF predicted.

It forecast Libya would run a huge state budget surplus of 19 per cent of GDP in 2012, and a current account surplus of 22 per cent.

Tagged : No tags for this article

Headlines Newsview all

Ugandan Girl Stabs Her Nigerian Boyfriend In The Face For Cheating On Her

A Nigerian man named Epa is currently fighting for his life in a hospital in Malaysia. According to the story circulating from Uganda, his alleged ... Full story

Police arrest pastor at cementry over alleged rituals

Asaba – The Police in Delta said they had arrested a pastor of one of the Pentecostal churches in the state at a cemetery in ...

Peter Christopher, 48, Rapes Girl, 8, Offers Her Family N25,000 As Compensation

An eight-year-old girl has narrated how she was allegedly raped by their 48-year-old neighbour, Mr. Peter Christopher, one afternoon in the building her family shared ... Full story

Female Suicide Bomber Arrested In Cameroon (Photos)

Cameroon military have recorded massive successes as they have reportedly foiled two major bomb attacks.  Earlier, we gave you a report of a female suicide bomber ... Full story

Giant Snake Found At Daniella Okeke’s House

The actress said the massive snake was found at her backyard yesterday. I think that surrounding needs a little weeding. That plants surrounding the building ... Full story

Ex-Lawmaker Jailed 7 Years Jail For Drug Trafficking

A former member of the Adamawa State House of Assembly, Missa Bobbo, and a notorious drug baron, Bappa Madu, of Ngurore town have been sentenced ... Full story

Notorious, Cold Hearted Kidnapper Kills 7 Including His GirlFriend In One Day

On Saturday, February 16, 2013, Henry Chibueze, a notorious kidnapper terrorizing South East and South South parts of the country, stormed the home of his ... Full story

We Live Like Rats, Yet Nigerians Citizens Want Us To Be Their Friends - Nigerian Policemen

He was drenched with sweat by the time he wriggled himself through the narrow entrance of his room into the passageway. Looking very depressed and ... Full story

Nollywood Actress, Gloria Young Causes Scene At Bank

Popular actress, Gloria Young, is currently not a happy customer. The iconic actress was recently spotted at a bank where she created a scene and ... Full story

Generator Repairer Stabbed To Death By Scavenger

A 19-year-old scrap metal scavenger, Mohammed Bello, is in custody of the Department of Criminal Investigation, Yaba, Lagos for allegedly stabbing a generator repairer, Taiwo ... Full story

MJ's Famous White Sequined Glove Sells At Auction For £41,000

A sequined glove worn by Michael Jackson has been sold at auction for a whopping $64,000. Bidding for the iconic fashion piece started at $20,000, around ... Full story

Comment on: Arab Spring economies to recover slowly in 2013

Rate this article

0

Breaking News

DIVORCE MESS - Emeka Ike’s wife insists on separation

Emeka Ike now seems to be living out his life in courts. From the eviction court tussle with his landlord over the property on which ...

Read What Transpired Between A Female Photographer And VP Osinbajo During A Recent Encounter

An online user had nothing other than praises after his encounter with the vice president -prof Yemi Oinbajo...The message was posted on Instagram by a ...

Photos from Mavin Performance at NBA Event in SA

Mavin Records acts, Don Jazzy, Reekado Banks and Korede Bello were part of the African music stars that performed at the historic NBA exhibition contest ...

I Will Enhance My Body to Look Good…Sean Tizzle

Nigerian singer, Oluwaseun Morinhafen, also known as Sean Tizzle, in a recent interview has denied gossips making the rounds that he had changed the colour ...

My Wife Didn’t Like Our Son’s Music Career - Femi Falana

Music sensation, Falz, is enjoying every moment in the spotlight but before he got there, he had to cross some hurdles at home. Saturday Beats ...

My Mum Always Warned Me About Women - Mike Godson

In a recent interview with The Entertainer, fast rising Nollywood actor, Mike Godson revealed one of his best kept advices from his mum. The Imo ...

Checkout What Actress, Moji Olaiya Invested Several Millions On

Nollywood actress, Moji OLaiya, has joined the train of entertainers who are investing their money wisely to diversify into other businesses. Rather than remain dependent on ...

Omotola Jalade Causes Stare With Outfit (Photos)

Nollywood actress, Omotola Jalade, is really making a lot of men to salivate with her beauty which continues to radiate as the day goes by. The ...

Naira Has Recovered In Black Market, Checkout New Rate

Relief has come for individuals who are looking to change currency in the black market as the rate of naira to a dollar increased yesterday, ... Full story

Mario Balotelli's Liverpool Career Is Over

Mario Balotelli's career might be finally over at Anfield as he has been left out of trainings and tour.  Mario Balotellli's career in Liverpool may just ... Full story