(MENAFN- Qatar News Agency) The latest International Monetary Fund (IMF) World Economic Outlook (WEO) projections suggest that economic performance in the Middle East and North Africa (MENA) region remains mixed.
On the one hand, growth in the oil importing countries of the MENA region remains subdued as political uncertainty and lack of investment is holding back growth
On the other hand, oil exporting countries, including the Gulf Cooperation Council (GCC), continue to grow rapidly, boosted by large infrastructure projects, according to QNB Group, weekly analysis issued here on Saturday
This dual speed development will continue over the next two years, with the GCC countries as the locomotive for growth in the MENA region and the main source of investment and financing, said QNB Group
According to the latest QNB Group forecasts, issued here on Saturday ,the overall MENA economy will grow 2.1% in 2013 and 3.8% in 2014 (see chart)
The overall figure masks a significant difference in performance between oil exporters, including the GCC countries, and oil importers
Last year's subdued 2.7% growth in MENA oil importers is expected to fall to 1.6% in 2013 and recover to 3.2% in 2014
However, this will not be sufficient to begin making sizable progress into creating sufficient jobs to reduce these countries' large unemployment rates
Meanwhile, oil exporters' healthy growth rates are projected to moderate this year to 3.0% as they scale back increases in oil production amidst modest global energy demand
Continued large infrastructure investment is expected to lead to a rise in economic growth to 4.5% in 2014
Economic conditions remain impaired across most MENA oil importers, with continued social unrest in Arab Spring countries, and an economic environment characterized by modest global growth, persistently high food and fuel prices, and weak domestic confidence
Eroded international reserves are unlikely to improve in the short-term, absent a boost in exports, foreign direct investment (FDI), or remittances.
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