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

TB Joshua To Compensate Families Of Victims $4,500 Each

 The General Overseer of Synagogue Church Of All Nations, Prophet T.B Joshua has said through the church spokesperson, Kirsten nematandani that, the church will be ... Full story

D'banj Strikes It Big With Apple

Dapo Oyebanjo, famously known as D'Banj or Banglee has confirmed that he indeed has a deal with multi-millionaire company, Apple, which involves making a musical ...

Actress Regina Askia Volunteers To Take Care Of Ebola Patients In New York

Ace Nollywood actress/ beauty queen who is now a nurse, Regina Askia has made a brave and touching move to work at a US Ebola ...

Boko Haram - 'Chibok girls would surely be released on Monday'

Self acclaimed secretary General of Boko Haram, Mallam Danladi Ahmadu have said that the group’s cases fire agreement with the Federal Government is very much ...

Adebambo Adetunji, Pastor In Ilorin Arrested For Snatching Cars At Gunpoint

A district pastor of a church in Ilorin, the Kwara State capital, has been remanded by a Lagos Magistrate’s Court sitting in Ikeja. The 37-year-old pastor, ... Full story

Rivers State Governor Rotimi Amaechi Says Corruption In Nigeria Is Uncontrollable

Rivers State Governor, Mr. Rotimi Amaechi, has described the level of corruption in Nigeria at the moment as uncontrollable. Amaechi, who is also the Chairman, Nigerian ...

Boko Haram frees 45 women recently abducted

There are reports that the Islamic violent group, Boko Haram has reportedly freed about 45 women recently abducted from Waga Mangoro and Madagali villages between ...

Boko Haram Kidnaps 40 More Young Girls

Fresh reports filtering in from Adamawa State has it that another set of 40 girls have been abducted by the outlawed Islamic sect, Boko Haram. The ...

Nigerian Dominic Adesanya Arrested After He Jumped the White House fence and ran onto the North Lawn

A Maryland man jumped the White House fence and ran onto the North Lawn before being subdued Wednesday night. Dominic Adesanya, 23, stood on the North ... Full story

Jealous Boyfriend Warns President Obama - Video

A voter standing beside President Barack Obama as he was casting his early ballot for the 2014 midterm elections in Chicago warned the Commander-in-Chief: 'Don't ... Full story

Father abandons his three children in boarding school for eight years

Three children abandoned in a boarding school in Abule-Iroko in the Ado-Odo Ota Local Government Area of Ogun State are longing to meet their parents ... Full story

Comment on: Arab Spring economies to recover slowly in 2013

Rate this article

0

Featured author

Mandy Heuman

Breaking News

I Am a Hopeless Lover But Submissive wife........Ara

Talking drummer and singer, Ara recently spoke about her crashed marriage once again in a recent interview. Ara’s marriage to her Iceland based hubby packed ...

African American Based Comedians Foxy P, Kekere Lion, Kapone Rocks Ruggedman 8Varsity Wears(photos)

Few weeks ago, 2face Idibia was spotted wearing Ruggedman's 8varsity jacket from his clothing line. That was just one of the numerous celebrities that love ...

Why Do Muslim/Christian Convert Religion?

Religious conversion is the adoption of a set of beliefs identified with one particular religious denomination to the exclusion of others. Thus 'religious conversion' would ...

TB Joshua Donates $4,500 To Family Of Victims In Collapse Building

In the wake of controversies with the aftermath of the Synagogue guest house building collapse on September 12, 2014. Prophet TB Joshua has announced a ...

Why Kenneth Okonkwo Is Worried Ahead Of The Elections

Veteran Nollywood actor, Kenneth Okonkwo who recently declared his political ambition is currently worried and the reason is not far fetched.The Enugu State born popular ...

Photo Journalist Attacks Actress, Adunni Ade AND Tonto Dikeh on Red Carpet

Do you have a story/gist for publication? Please email it to story@nigeriafilms.com FITHENA | 10/24/2014 5:49:06 PM REMOVE THIS r*****h NEWS AWAY U DONT KNOW WHAT TO ...

Obiwon Shares New Family Pictures As They Celebrate Their Anniversary

Nigerian music artiste and former Banker, Obiora Agu popularly known as Obiwon, two days ago celebrated his 3rd wedding anniversary.The now gospel artiste, released adorable ...

I Met Niyola In A Bathroom- Banky W

Music artiste and EME records boss, Banky W for the first time gushed about his first lady, Niyola. Niyola who is EME records first lady ...

Chita Agwu Set To Wed Her Malaysia Based Fiance Tomorrow

Nollywood beau, Chita Agwu, who started acting in 2009 and has so far worked her way up to the top of the ladder with more ...

Why I Respect Denrele Above Others………Chika Ike

Nollywood actress, Chika Ike, has described TV host, Denrele Edun, as one of the people that has brought life to the entertainment industry in Nigeria.This ...