IMF sees Middle East economies to grow quickly

The oil-exporting countries, particularly in the Gulf region, will continue to expand quickly, the International Monetary Fund (IMF). Their prospects appear even better with crude oil prices hitting their highest in more than two years at upwards of ＄112 per barrel, propped up by disruption in oil exports from war-ravaged Libya.

IMF said the disruption of oil production in Libya means that, given constraints on non- OPEC capacity, oil production from other OPEC suppliers will increase in 2011. High energy prices will swell the region's current account surplus, which is projected to rise to 12.7 % of GDP in 2011 from 6.5% of GDP in 2010.

Growth in Saudi Arabia has also been revised up to 7.5% this year, compared with 4.5 percent projected in October, "supported by sizable government infrastructure investment," the IMF added. Qatar's economy is projected to expand by a massive 20% this year, compared with 16.3% in 2010. This growth is underpinned by continued expansion in natural gas production and large investment expenditures, IMF stated.

Growth in Qatar has been revised upwards from 18.6% in October. Kuwait's economy will grow by 5.3% and the UAE 3.3 percent. Iraq's economy will also grow 9.6%, Algeria's 3.6% and Sudan's 4. %. However, spreading social unrest in MENA is putting pressure on economic growth in several countries in the region. Growth in Iran is expected to stall temporarily in 2011 as subsidies for energy and other products are phased out - a much-needed reform that will yield benefits in the medium term, IMT finally said.