Arab economies to grow 3.5 pct in 2016: report

The Arab Monetary Fund (AMF) said on Tuesday the Arab economies are poised to grow by 2.8 percent in 2015 and by 3.5 percent in 2016, amid an expected rebound in oil prices and in global demand.

The expected growth rate of the world economy has been revised down to 3.3 percent in 2015 by several international organizations due to the less-than-expected performance of the U.S. economy, the continuation of worries about eurozone economic recovery, and the geopolitical risks and some weakness in the emerging market economies, according to a report by the AMF.

On the other hand, Arab economies are poised to grow stronger in 2016 as "international organizations expect world economic growth to increase to 3.8 percent due to improved economic prospects in both developed and developing economies."

The growth rate of Arab oil exporting countries is expected to decline to 2.7 percent in 2015 compared to three percent in 2014, the report said.

The report quoted "international organizations" as expecting oil prices to decrease by around 40 percent in 2015 and to rebound by nine percent next year amidst enhanced growth expectations.

Higher oil prices anticipated in 2016 will reflect positively on the levels of economic activity in oil exporting countries.

The growth rate of Arab oil exporting countries is estimated to rise to 3.4 percent in 2016 supported by rising Gulf Arab countries' growth rate.

The gross domestic product of other Arab oil exporting countries, except Algeria, is anticipated to contract in 2015, reflecting the impact of declining oil prices on the economies of these countries, which will be compounded by the effects of internal developments. Endit