Abstract

The average growth rate of gross domestic product (GDP) in real term of the Arab region is estimated to be 4.8 per cent for 2012, compared to 2.2 per cent in 2011. The recovery in the Maghreb sub region, particularly of Libya, and the consistent economic growth in Gulf Cooperation Council (GCC) countries were significant contributing factors. For 2013, the average real GDP growth rate of the region is projected at 4.4 per cent. The GDP growth rate on average is likely to taper off due to the decline in energy export revenues which marked a historic high in 2012.However, the polarization of economic social developments in the region deepened in 2012. Major energy exporters in the region, namely GCC countries, are on a stable recovery path which was enabled by an expansionary fiscal and monetary policy mix worsening foreign exchange constraint.