World Economy

MENA Economy to Plunge in 2017

MENA Economy  to Plunge in 2017MENA Economy  to Plunge in 2017

The Middle East and North Africa region will next year record its weakest economic growth since the global financial crisis in 2009, according to a report, Arabian Business reported. The latest outlook from Capital Economics warns the region will “struggle” again in 2017 as fiscal policies are tightened to plug current account and budget deficits, which have widened in the past two years as a result of persistent low oil prices. Saudi Arabia is likely to see subdued growth for the most of the year, while, on the other hand, the UAE is expected to be the best performing economy in the (Persian) Gulf Arab countries in 2017 going into 2018, the research said .Overall average growth in the region is likely to weaken to 1.5% in 2017. Capital Economics noted that dollar pegs in the (Persian) Gulf Arab countries would remain in place “but that means policymakers will be forced to follow the US Federal Reserve and hike interest rates”.


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