Growth forecast down

Salameh says monetary situation “good compared to regional peers”

Real economic growth is expected to be around two percent this year, according to the Central Bank’s estimate. “This figure is lower than the preliminary forecast of the International Monetary Fund,” Riad Salameh, governor of the Central Bank said.

The IMF has projected a GDP growth of between three and four percent in 2012.
Salameh said the events in the Arab region, mainly Syria, have curbed investment and consumption. He also said that the drop in the Euro value limited competitiveness.

“Still, the economic situation is acceptable, and the monetary situation is good, compared to surrounding (economies),” said Salameh. According to Salameh, unlike its regional peers, the local monetary situation enjoys stability buffered by high liquidity held by banks and high foreign currency assets at the Central Bank.