UNIC Beirut and ESCWA launched today the UN economic report entitled "World Economic Situation and Prospects 2010" in a press conference held at the UN House. Issued at the beginning of every year, the report represents a collective effort among the Department of Economic and Social Affairs, the UN Conference on Trade and Development, and the five UN regional economic and social commissions, including ESCWA.
Speaking at the conference were UNIC Beirut Director Bahaa Elkoussy, Head of the Economic Analysis Section at the ESCWA Economic Development and Globalization Division, Ali Kadri, and Economic Affairs Officer Yasuhisa Yamamoto.
Elkoussy presented the report, which indicated that economies in Western Asia are expected to record a positive 3.6 per cent growth in 2010. He added that this year is characterized by the change in the mood in the region that is shifting from pessimism to measured optimism due to a surge in oil prices.
Kadri, for his part, gave a detailed overview of the report saying that Western Asia witnessed in the past months a significant economic improvement that is expected to last in 2010.
"In the region where the major crude oil exporters are located, the strong recovery of crude oil prices, in the range of US$65 to $80 per barrel since the 2nd quarter of 2009, contributed to this optimistic projection," Kadri added.
It is yet to be known if the recent event of "Dubai shock" could represent such a lagged economic impact. The economic sentiment of the region, indeed, has been improved and is reason for optimism. However, the region may have to be cautious on those lagged economic impacts which may surface in the forthcoming months.
The report states that Western Asia saw a negative economic performance in 2009. Due to the fall in oil prices and external demand as well as lower private foreign capital inflows, Western Asia’s economies shrank by 1.0 per cent; a severe contraction after the posting positive economic growth of 4.6 per cent in 2008
