World Bank2013-03-262013-03-262008https://hdl.handle.net/10986/12949During 2007 the Middle East and North Africa Region (MENA) experienced average growth of 5.7 percent. This was the fifth year in a row in which the region grew at a rate higher than 5 percent, exceeding levels reached in the 1990s and early 2000s. This performance occurred in the context of an external environment marked by three major developments: a continued rise in the price of hydrocarbons, turbulence in international financial markets following the sharp drop in market valuations of U.S. mortgage- backed securities, and a sharp rise in the price of non- oil commodities, especially foodstuffs. These developments have affected the various MENA economies in different ways. On average, however, the region has done well, with respectable growth and comfortable external and fiscal balances. Similar performance, that is, average growth of about 5.6 percent, is expected over the next three years. Oil prices are expected to remain buoyant, leading to high levels of investment and remittance flows within the region. Food prices are also expected to remain high. Because most countries in the region subsidize food and energy, high food prices will lead to fiscal pressures for many governments. But such pressures are not expected to choke off economic growth. Global financial turbulence and a likely slowdown of growth in the Organisation for Economic Co- operation and Development (OECD) countries are expected to be offset by continued robust spending among oilexporting countries and vibrant expansion in China and India.en-USCC BY 3.0 IGOAVERAGE OIL PRICEBALANCE OF PAYMENTSBALANCE OF TRADEBANKING SECTORBANKING SYSTEMBILATERAL TRADEBILLBONDSBUDGET DEFICITBUSINESS CLIMATECAPACITY CONSTRAINTSCAPITAL FLOWSCAPITAL INFLOWSCAPITAL MARKETCAPITAL MARKET INTEGRATIONCAPITAL MOVEMENTSCAPITAL OUTFLOWSCOMMODITY MARKETCOMMODITY MARKETSCOMMON MARKETCOMMUNICATION TECHNOLOGYCOMPETITIVENESSCONSUMER PRICE INDEXCONSUMER PRICE INFLATIONCOPYRIGHT CLEARANCECOPYRIGHT CLEARANCE CENTERCPICURRENCYCURRENCY REGIMECURRENT ACCOUNTCURRENT ACCOUNT BALANCECURRENT ACCOUNT BALANCESCURRENT ACCOUNT DEFICITCURRENT ACCOUNT POSITIONSCURRENT ACCOUNT SURPLUSDEBTDEFICITSDEMAND GROWTHDEPRECIATIONDEVELOPING COUNTRIESDIRECT FOREIGN INVESTMENTDIVIDENDSDOLLAR PEGDOMESTIC CONDITIONSDOMESTIC CONSUMPTIONDOMESTIC DEMANDDOMESTIC ECONOMYDOMESTIC PRICESDRAG ON GROWTHECONOMIC ACTIVITYECONOMIC CONDITIONSECONOMIC DEVELOPMENTSECONOMIC ENVIRONMENTECONOMIC GROWTHECONOMIC LIBERALIZATIONEFFECTIVE EXCHANGE RATEEMERGING MARKETSEMPIRICAL ANALYSISEQUILIBRIUMEQUITY MARKETSEURO EXCHANGE RATEEXCHANGE RATE APPRECIATIONEXCHANGE RATESEXPENDITURESEXPORT COMPETITIVENESSEXPORT MARKETSEXPORT REVENUESEXPORT VOLUMEEXPORT VOLUMESEXPOSUREEXTERNAL BALANCEEXTERNAL BALANCESEXTERNAL POSITIONSFACTOR MARKETSFINANCIAL INSTITUTIONSFINANCIAL SECURITYFISCAL BALANCEFISCAL BALANCESFISCAL DEFICITFIXED INVESTMENTFLEXIBLE EXCHANGE RATESFOOD PRICEFOOD PRICESFOREIGN DIRECT INVESTMENTFOREIGN INVESTMENTFOREIGN INVESTMENTSFOREIGN RESERVESFREE TRADEFREE TRADE AGREEMENTFREE TRADE AGREEMENTSFUTURE GROWTHGLOBAL INTEGRATIONGOLDGROWTH RATESHARD CURRENCIESHIGH-INCOME COUNTRIESIMBALANCESIMPORTIMPORT DEMANDIMPORT PROTECTIONIMPORT TARIFFSIMPORTSINCOMEINCOME GROUPSINDUSTRIAL COUNTRYINFLATIONINFLATION PERFORMANCEINFORMATION SYSTEMINTELLECTUAL PROPERTYINTERNATIONAL CAPITAL MARKETSINTERNATIONAL EMERGING MARKETSINTERNATIONAL FINANCIAL MARKETSINTERNATIONAL LABOUR ORGANIZATIONINTERNATIONAL MARKETSINTERNATIONAL RESERVESINVESTMENT OUTLAYSINVESTOR CONFIDENCELABOR FORCELABOR FORCE GROWTHLEVELS OF IMPORTLEVELS OF INVESTMENTLIBERALIZATIONLIQUIDITYLIQUIDITY CONDITIONSLOW-INCOME COUNTRIESMACROECONOMIC MANAGEMENTMACROECONOMIC PERFORMANCEMACROECONOMIC STABILITYMARKET CAPITALIZATIONMARKET CONDITIONSMARKET POWERMARKET PRESSURESMARKET VALUATIONSMIDDLE-INCOME COUNTRIESMORTGAGEMORTGAGE-BACKED SECURITIESNATURAL RESOURCESOIL COMMODITIESOIL COMMODITYOIL COMMODITY PRICESOIL DEMANDOIL EXPORTOIL EXPORTERSOIL EXPORTSOIL MARKETOIL PRICEOIL PRICESOIL REVENUESOIL SUPPLYOIL-EXPORTING COUNTRIESOPECOUTPUTOUTTURNSPOLICY MAKERSPOPULATION GROWTHPORTFOLIOPORTFOLIO FLOWSPRICE INCREASESPRICE INDEXPRICE OF OILPRIVATE CONSUMPTIONPRIVATE INVESTMENTPRODUCERSPROPERTY RIGHTSPURCHASING POWERPURCHASING POWER PARITYQUOTASRAPID GROWTHREAL EFFECTIVE EXCHANGE RATESREAL ESTATEREGIONAL INTEGRATIONREGIONAL TRADEREGIONAL TRADE AGREEMENTREGIONAL TRADE AGREEMENTSREGIONALISMREGULATORSREGULATORY REFORMRELATIVE PRICEREMITTANCEREMITTANCESSECTOR REFORMSSECURITIESSHORTFALLSHORTFALLSSLOWDOWNSTOCK MARKETSTOCK MARKETSSTRONG DEMANDSTRUCTURAL REFORMSTRUCTURAL REFORMSSUPPLY SIDESURPLUSSURPLUSESSUSTAINABLE GROWTHTARIFF REDUCTIONSTERMS OF TRADETOTAL EXPORTSTOTAL IMPORTSTRADE ASSOCIATIONTRADE BALANCETRADE BALANCESTRADE DEFICITTRADE INTEGRATIONTRADE POLICYTRADE RESTRICTIVENESSTRADE SURPLUSTRANSPORTATION COSTSTREASURYUNCERTAINTIESUNCERTAINTYUNEMPLOYMENTVALUE INDEXWORLD DEMANDWORLD DEVELOPMENT INDICATORSWORLD TRADEWorld Bank10.1596/12949