IMF projects two percent GDP growth in 2012

Slowest growing economy in the region

Real economic growth is expected to be around two percent in 2012, according to the latest world economic outlook report issued by the International Monetary Fund (IMF). The IMF had forecast growth at three percent this year. The projected growth rate in 2012 would make Lebanon the slowest growing economy in the MENA, alongside Bahrain and Egypt. Sudan, Yemen, and Iran are projected to witness a slowdown.

The IMF forecast growth of 5.3 percent for the MENA region as well as for emerging economies. It projected the world economy to grow by 3.3 percent.

The IMF had earlier said that weak policy-making, not the conflict in Syria, is the main risk to our local economy. It said that while the war in Syria has had a moderate impact on the economy, the outlook is more affected by the slowdown in investment due to policy paralysis.

Inflation is expected to average 6.5 percent this year, below the MENA average of 10.4 percent.