Middle East region will grow 2.5 percent this year, less than half the 6 percent seen in 2008, the International Monetary Fund said on Wednesday, blaming a sharp fall in oil prices. It was the third time this year that the World Bank or the IMF lowered growth prospects for the region. In April, the World Bank said economic growth in Middle East and North Africa (MENA) is set to halve to 3 percent this year. The IMF said in May the Middle East, North Africa, Afghanistan and Pakistan, or Menap region, will grow 2.6 percent in 2009. “Among oil producing countries, the sharpest slowdown is expected in the UAE, where the exit of external funds has contributed to a large contraction in liquidity, a sizeable fall in property and equity prices and substantial pressure in the banking system,” the IMF said in its World Economic Outlook. The brightest spot in the Middle East remains Qatar, which is projected to grow 18 percent this year, up from 16.5 percent in 2008, the IMF said, as the world's largest producer of liquefied natural gas expects to double production this year. Among non-oil producing nations - Egypt, Syria, Jordan and Lebanon - the IMF said Lebanon is set to experience the sharpest slowdown as a downturn in the Gulf cuts worker remittances to the country, which is finding it difficult to service its debt. The IMF said inflationary pressures for the Mideast region “are projected to subside quickly, owing to lower commodity prices, rents and economic activity”.
