Socioeconomic trends and developments in the Arab region

The average real GDP growth in the Arab region was an estimated 1.5 per cent in 2014, unchanged from 2013 (table 5). A major fluctuating factor are negative growth estimations for Iraq, Libya and Syria. Despite falling oil prices in the second half of 2014, GCC countries have remained the growth centre of the Arab region. The active non-oil sector in GCC countries has outpaced the decelerating oil sector. The value of financial and real estate assets has shown a positive growth in GCC countries, although the speed of growth stalled in the second half of 2014. However, the recent trend of polarized economic performances between GCC countries and other Arab countries has ended owing to lower oil prices, which have benefited oil-importing Arab countries by easing their balance-of-payment and fiscal constraints.

Related Subject(s): Economic and Social Development