World Bank: wars and falling oil prices hurt growth in the Middle East 2-5
World Bank: wars and falling oil prices hurt growth in the Middle East
February 5, 2016
Twilight News World Bank /said it was likely that only economic growth recorded in the Middle East and North Africa, 2.6 percent in 2015, down from what was expected in October, a 2.6 percent because of the bad impact of the war, terrorism and the falling price of oil.
In the new report, the World Bank said that the circle in Syria war five years ago and its extension to neighboring countries cost the region about $ 35 billion in the form of wasted produce compared to prices in 2007 which is equivalent to the GDP of Syria in that year.
And causing the fall in oil prices to around $ 30 a barrel, compared with more than $ 100 two years ago, a big problem for the oil exporters in the region, with government revenue has fallen sharply and the growing budget deficit. The World Bank said that the public debt to Saudi Arabia will reach 20 percent of GDP in 2017 which is more than ten times its level in 2013, which amounted to 2.2 percent.
The World Bank said in the report that "the richest oil exporters in the region who are Saudi Arabia, Qatar, Kuwait and the UAE have large reserves to enable them to cope with the deficit in the coming years but not beyond that.
"The current levels of spending and the price of oil, which has a $ 40 Saudi reserves will be exhausted by the end of the decade."
This report was published in a time when the World Bank is in talks on financing with some oil producers in other regions, including Azerbaijan, Nigeria and Angola.
The report cited estimates of the World Bank the occurrence of material damage worth between $ 3.6 billion and $ 4.5 billion in only six cities in Syria, a war-torn Aleppo, Daraa, Hama, Homs, Idlib and Latakia. They were assessing the damage in the housing, health, education, energy, water, transportation and agriculture infrastructure projects.
And it found a similar assessment in Yemen, which has also been affected by war damage ranging between four billion and five billion dollars in four cities and is the capital of Sanaa, Aden, Taiz and Zanzibar.
But the bank said that the wars there and in other areas, possibly causing larger losses in human capital at a time when Syrian refugees languish without a job and frustrated as the gains in the educational field. And prevent more than half of school-age children in Syria go to schools during 2014-2015.
Laila Mutaga an economic expert at the World Bank for the region and prepared this report that reach "a peaceful settlement in Syria, Iraq, Libya and Yemen can lead to a rapid recovery in oil production, allowing it to increase fiscal space and improve the current account balance and promote economic growth in the medium-level positive effects on the states Neighboring."