Oil price increase leads to economic growth [Archives:2005/897/Business & Economy]
The ESCWA region, is expected in this year achieve an economic 5.2% growth rate according the Yemeni economic expert Mansour al-Bashiri. ESCWA countries include the GC states, Yemen, Jordan, Egypt, Lebanon, Palestine and Iraq. This growth rate is attributed to theincrease in oil revenues which benefitted ESCWA countries economies, except for Jordan. In August this year, the oil prices hit 56 dollars per barrel.
The economic researcher told Yemeni Al-Thawra newspaper that pursuant to new expectations of growth in the ESCWA region in this year, it is expected that would be reflected positively on performance of the Yemeni economy. Improvement in growth rates of the countries of diversified economies is ascribed to a number of reasons, mainly the increase in oil returns, as they are also oil exporting countries, with the exception of Jordan, Lebanon and Palestine, also the increase of money transfers of expatriates in those countries, particularly the Gulf states as a result of the economic recovery the region has seen.
Economic prosperity would have probability of increasing remittances by Yemeni expatriates living in the Gulf countries. In addition the flourishing of Gulf economies would contribute to an increase in demand for Yemeni non-oil exports and consequently improvement of the economic growth.
The Yemeni economic researcher also pointed out that the regional area of the ESCWA had witnessed positive economic developments during the year 2004 reflected on the achievement of high economic growth rates. The expert added that growth rate in Yemen in 2002 had attained to around 3.6% and rose to 3.8% in 2003 then to 3.9% in 2004, and that is considered among the good rates.
He also said that the average production of crude oil in the region amounted to 91 million barrels per day and realized big annual revenues amounted to $312 billion with an increase reaching 92% compared to the year 2003. That had opened the opportunity to the region's countries to pursue expansive spending policies serving development purposes.
Mr Al-Bashiri pointed out that in 2003 the ESCWA region countries had registered a big growth rate reached 4.7%, adding that the countries of more diversified economies achieved an economic growth rate a little more than the oil producing GCC states.
Mr al-Bashiri also said that Egypt and Jordan had achieved the highest growth rate among the more diversified economy countries during the year 2004, amounting to 5.5%. The state of Qatar occupied the first place with regard to growth rate among the Gulf oil states reaching 6%. He affirmed that it was the highest rate inside the ESCWA region because of improvement in its natural gas exports.
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