Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

GCC countries on stable economic growth despite weak oil sales, exports - UN report  Join our daily free Newsletter

MENAFN - Kuwait News Agency (KUNA) - 22/05/2014
No. of Ratings : 0
Add to Mixx!


(MENAFN - Kuwait News Agency (KUNA)) A UN report on world economic prospects for 2014 released on Wednesday indicated that member states of the Gulf Cooperation Council (GCC) have been on a stable growth path despite weak oil prices and exports.

According to the report 'UN World Economic Situation and Prospects 2014 mid-year update,' "large surpluses relative to Gross Domestic Product (GDP) are still present in oil-exporting countries, at about 16 percent in Saudi Arabia, and at even higher levels in some of the other oil-exporting countries." In western Asia, the report said, internal instability and lower oil exports continue to shape the economic picture, adding that economic activity is still relatively weak in comparison with pre-crisis trend, with growth forecast to reach 3.6 percent this year after 3.8 percent in 2013, before accelerating to 4.4 percent in 2015.

The report predicted that the global economy is expected to strengthen over the next two years, despite a downgrade of growth prospects for some developing economies and economies in transition.

Growth of world gross product is now projected at 2.8 percent in 2014 and 3.2 percent in 2015, up from 2.2 percent in 2013, the report noted.

While the United States remained the largest deficit economy, its external deficit is expected to be about 2.2 percent of GDP in 2014, down significantly from the peak of six percent registered in 2006.

On the other hand, the report noted that the collective external surplus of China, Japan and a group of fuel-exporting countries has narrowed accordingly.

China, for instance, is expected to register a surplus of just above two percent in 2014, a sharp decline from a high of 10 percent in 2007 and Japan's surplus is expected to drop to less than one percent.

In contrast, the surplus of the euro area as a whole has increased to about 2.9 percent, with Germany running a surplus of seven percent.

This pace of expansion, the report cautioned, is still low compared to the growth path before the 2008 global financial crisis.

"More than five years after the financial crisis, the world contiues to struggle with getting the global economic engine back to running at full capacity. Compared to pre-crisis trends, we have not sufficiently boosted output, trade and employment to their potential levels," Pingfan Hong, Chief of the Global Economic Monitoring Unit of the UN Department of Economic and Social Affairs said in a statement.


The report's downward revision in growth projections mainly reflects deteriorating situations in several emerging economies due to different challenging economic and political conditions.

The report warned that risks and uncertainties for the world economy include: international spillovers from ongoing adjustment in monetary policies by developed economies; vulnerabilities of emerging economies; remaining fragilities in the euro area; long-term unsustainable public finance for many developed countries; and geopolitical tensions.

It indicated that developed countries will continue to recover, as their growth is projected at 2 percent in 2014 and 2.4 percent in 2015.

"For the first time since 2011, the developed economies of North America, Europe and Asia are all aligned towards positive economic growth over the next two years, which should form a positive cycle to reinforce further recovery," the report said, adding, however, that five years after the global financial crisis, projected growth rates remain too weak to recover the output and jobs lost in most of those economies.

With new projected growth rates of 4.7 percent and 5.1 percent for 2014 and 2015 respectively, developing countries, as a group. will keep contributing to a large proportion of global growth, the report said, adding, however, that this path is 2 percent lower than pre-crisis levels for developing countries.

The report said the world trade growth was flat in the first quarter of 2014. However, some improvements is expected for remainder of 2014 as import demand in major developed countries gradually increases.

It added that real exports are forecast to grow by 4.1 percent in 2014, almost twice as fast as in 2013, but still below the pre-crisis trend of twice the global output growth.

 


Kuwait News Agency (KUNA)




  MENA News Headlines
 Dec 7 2016 - Qatar- Armed groups take control of Libyan town of Ben Jawad, close to major oil portsThe Peninsula
(MENAFN - The Peninsula) BENGHAZI, Libya: Armed groups took control on Wednesday of the Libyan town of Ben Jawad, close to some of Libya's major eastern oil ports, security officials said. Miftah ...

 Dec 7 2016 - Israeli missiles hit near airbase outside Damascus: Syria mediaThe Peninsula
(MENAFN - The Peninsula) Damascus: Several Israeli missiles struck the notorious Mazzeh airbase outside Damascus overnight without causing any casualties, Syrian state media reported on Wednesday. ...

 Dec 7 2016 - Turkey says pushing Aleppo talks between Russia, Syria oppositionThe Peninsula
(MENAFN - The Peninsula) Moscow:Ankara is doing "everything possible" to facilitate negotiations between Moscow and Syrian opposition groups to halt the bloodshed in Aleppo, Turkey's ...

 Dec 7 2016 - Syria rebels call for Aleppo truce, civilian evacuationThe Peninsula
(MENAFN - The Peninsula) Aleppo, Syria:Syrian rebels in Aleppo city called Wednesday for an immediate five-day truce and the evacuation of civilians to other opposition-held territory in the northern ...

 Dec 7 2016 - Arab Palestinian Investment Company - APIC Achieves Net Profits of USD6.28 Million in the First Half of 2016MENAFN Press
(MENAFN Press) Tarek Aggad, Chairman and CEO of Arab Palestinian Investment Company - APIC, said that the group achieved net profits after tax of USD6.28 million. Net profit attributed to APIC's ...

 Dec 7 2016 - The Dubai Summer Pass: City Entertainment Offer Proves a Great SuccessMENAFN Press
(MENAFN Press) Now in its 18th year, the "Dubai Summer Surprises" campaign is the highlight of the city's summer calendar, with events and activities for the whole family. As part of this campaign ...

 Dec 7 2016 - Kuwait- His Highness the Amir thanks Bahraini King on warm hospitalityKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) KUWAIT, Dec 7 (KUNA) -- His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah has cabled Bahrain's King Hamad bin Isa Al-Khalifa expressing deep gratitude ...

 Dec 7 2016 - Greenback slide resumes on disappointing Fed minutes Japan’s verbal intervention falling on deaf earsMENAFN Press
(MENAFN Press) Dollar bulls were clearly uninspired by July’s Federal Reserve’s minutes released on Wednesday as participants remained divided over when to move interest rates. According to the ...

 Dec 7 2016 - Kuwait- His Highness the Amir departs BahrainKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) MANAMA, Dec 7 (KUNA) -- His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, along with his official delegation, departed the Kingdom of Bahrain on ...

 Dec 7 2016 - Kuwait insists on plan to provide 15 pct of energy out of renewable energyKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA)) AMMAN, Dec 7 (KUNA) -- The State of Kuwait is resolved to go ahead with its strategy to provide 15 percent of its energy needs out of renewable energy by 2030, an ...

more...


 





Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Search News
Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help