Sunday, October 24, 2010
Middle East, North Africa Economies Will Accelerate Next Year, IMF Says
The IMF released a statement saying growth in the Middle Eastern and North African economies will accelerate next year as crude production rises. These countries economic systems rely heavily on oil exportation. Although this is positive news for the area, the profits from crude production need to be invested into projects that will benefit the economy in the long run, keeping sustainability and viability in mind. The IMF report advises these countries to diversify their exports to include markets in South America and Asia, instead of mainly relying on Europe. Diversification of exports will be beneficial in the long run - once the oil is gone these economies must be able to function without that source of income.
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2 comments:
I am concerned that these oil-producing economies could grow at the expense of economic growth in the U.S. if increased oil prices hinder our recovery. The U.S. needs to decrease its reliance on oil by investing in electric cars and alternative energy.
I am unsure of large economic growth in these countries because of the high corruption rates which do not let incomes trickle down to the needy. Furthermore, investment into other sectors is not easy and thus this growth might take years to develop. This is however a good idea since there are alternatives to oil that are being invented.
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