North Africa may ‘surpass Gulf economic growth’
Jeddah, August 4, 2014
North African economies are likely to overtake the economic growth in the Gulf, despite challenges such as large current account and fiscal deficits, three years after the Arab Spring uprisings, said a report.
A gradual return to political stability in Egypt and Tunisia should support activity there, while exports are likely to pick up on the back of the modest recovery in the global economy, said the Saudi Gazette report quoting London-based Capital Economics.
The overall growth is expected to gradually strengthen over the next couple of years, it said.
Meanwhile, growth in the Gulf region is likely to slow at the back of a fade in the past decade’s boom in hydrocarbon production and less supportive fiscal policy.
The Saudi Arabian economy is set to slow over the next few years as government spending rises at a weaker pace and growth in the oil sector eases, said the report.
The UAE’s non-oil sector is likely to benefit from the pick-up in the global economy, but rising fears in Dubai of a fresh property bubble, as well as the emirate's large corporate debts will continue to cast a shadow over the outlook, it said.