(MENAFN - Arab Times) Kuwait has been forecasted to enjoy the fourth biggest GDP growth among the Gulf States in 2012, behind Qatar, Saudi Arabia and Oman, according to a report by BofA Merrill Lynch Global Research released last week.
The study titled "BofA ML Economics: Global Weekly - Innocent bystanders?" stated that Kuwait will see a GDP growth of 3 percent in 2012, while Qatar will lead the Gulf states at 6.1 percent, followed by Saudi Arabia at 5 percent and Oman at 3.3 percent.
UAE is estimated to tie with Kuwait at 3 percent, while Bahrain is estimated to experience the least growth at 2.3 percent.
Further the study warned that Kuwait's Consumer Price Index (CPI) inflation will go up by 4.8 percent in 2012. Bahrain will experience the lowest increase in CPI inflation at 1 percent, while Saudi Arabia topped the list at 5 percent. Qatar's projected inflation stands at 1.9 percent, and UAE's at 1.3 percent.
On the global level, the study noted that the feared fallout from a Greek euro exit continues to sway markets.
The 2012 GDP growth in China is expected to reach 8 percent, 2.8 percent in Brazil, down from 3.4 percent last year, and 6.7 percent in India.
The study said that policy has turned supportive in some countries, with interest rates coming down while EM exchange rates tumble.
It recommends that in order to calibrate the response, policymakers have to judge the source of the recent softness, considering the subdued performance of the largest EM economies, the Euro flu, and other factors closer to home.