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Forecasts of Increase in Arab Product to USD 2.7 Trillion in 2017 | ASHARQ AL-AWSAT English Archive 2005 -2017
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A flame rises from a chimney at Taq Taq oil field in Arbil, in Iraq’s Kurdistan region, August 16, 2014. REUTERS/Azad Lashkari

London- The Arab Investment & Export Credit Guarantee reported that the Arab economy is more likely to witness a slight improvement in 2017 as the Arab product increases to an estimate of USD 2.7 trillion.

This increase in product pushes the Arab individual income average to USD7,750 per year along with continuous rise of inflation rate (5.9%) and population (up to 372 million).  

In a detailed report, the Arab Investment & Export Credit Guarantee revealed that Arab economies have been witnessing, since the beginning of the third millennium, different consequences that varied from one country to another.

The report attributed the risks looming in the economic horizon to internal political events and foreign influences due to changes in the world economy, especially that of China and repercussions of Britain’s exit from the European Union (EU) not to mention the change in U.S. political approaches with launching the age of U.S. President-elect Donald Trump.

The Arab Investment & Export Credit Guarantee referred to statistics by the International Monetary Fund (IMF). These statistics show that slight enhancement in 2017 in internal and oversees balances of payments despite the uncertainty regarding oil prices and growth dimensions in emerging markets, in general, and in China, namely.

According to the report, it is normal that capitals and investments in the region get affected, given that the net capital account of Arab balances of payments increased from USD4.5 billion in 2013 to USD22.2 billion in 2015.

The report revealed that the future of region’s economy depends on developments in the field of oil exportation, output and prices – oil still represents 85% of the region’s exports and more than 60% of the government’s revenues.