GDP growth at five percent in 2011

Economic growth higher than world
average, above IMF forecast: ABL

The local economy grew by 5.2 percent in 2011, down from a growth of seven percent in 2010 and nine percent in 2009, according to the annual report published by the Association of Banks (ABL). “The economy has lost momentum, following four years of strong growth, due to a number of local and external developments associated with events in the Arab region, especially in Syria,” the report said.

Despite this, GDP growth was still higher than the world average of 3.9 percent. It was also higher than the 1.5 percent growth forecasted by the International Monetary Fund (IMF). Nominal GDP was estimated to be at around $40 billion. The GDP deflator was estimated at 1.9 percent.
Economic activity retreated during the last year as seen from the slowdown shown by most economic indicators.

The report said that it is difficult to make a GDP growth forecast for 2012 due to the uncertain outcome of a set of factors that are impacting economic growth. However, it said the economy is likely to see moderate growth close to that achieved in the second half of 2011. Economic growth depends on a number of variables, among which are the domestic political situation, economic growth in Gulf countries, and the situation in Syria. Growth is also reliant on the long-awaited structural reforms, and major infrastructure projects.

Reported by Hanadi Chami