According to new report released by international financial institution, economic growth in Middle East this year to reach maximum of 1.6% compared to 5.6% in 2008; Kuwait, Saudi Arabia to face recession
Doron Peskin, 06.28.09, Ynet

A World Bank report on the performance of Arab markets this year predicts a somewhat gloomy picture in regards to most of them. The Bank experts predict that the economic growth in the Middle East this year will reach a maximum of 1.6% compared to 5.6% in 2008.
 
The bank estimates that Kuwait and Saudi Arabia, two of the Arab world's biggest oil manufacturers, will be forced to deal with a recession this year after enjoying a rise in oil prices in the past few years.
 
As for the expected drop in income from oil in 2009, the report says this will also influence other Arab countries which are not dependent on this sector, due to an expected decline in the flow of investments, a drop in the transfer of income from workers abroad and a drop in income from tourism.
 
The bank also expresses its concern in regards to the economic situation in Lebanon and Jordan. Both these countries suffer from large deficits in their balance of payments, and are therefore facing the biggest risk of a balance payment crisis in light of the expected recession, the report says.
 
The bank estimates that the growth in the Lebanese and Jordanian markets will not surpass 2.5% this year – a sharp slowdown compared to 2008. The bank predicts, however, that these two economies will resume significant growth in 2011.
 
Doron Peskin is head of research at Info-Prod Research (Middle East) Ltd .

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