29 August 2009
Arab countries saw the highest inflation rates in the world in 2008 as a result of a rise in prices and strong domestic demand because of an economic upsurge, according to official data.
From around 7.65 per cent in 2007, the combined Arab inflation rate climbed to a record high of 10.09 per cent in 2008, said the Kuwaiti-based Inter-Arab Investment Guarantee Corporation (IAIGC) in its annual report.
But the report expected the rate to shrink in 2009 due to the economic slowdown, mainly in the Gulf, coupled with a fall in global prices and other factors.
"The consumer price index in 19 Arab countries, which have provided data, peaked at 10.09 per cent last year compared with 7.65 per cent in 2007.
"The rate last year far surpassed the inflation rate of 3.38 per cent in the industrial nations and the 9.26 per cent in emerging and developing economies," it said.
The surge last year was caused by a sharp increase in global fuel and food prices, the report added, along with an upswing in domestic demand due to high oil prices and expansionary fiscal policies in the region, and a large rise in private investment.
"Inflation in the Arab World is expected to recede this year mainly because of a decline in the prices of basic commodities, lower rents and a slowdown in the economies of many members," said IAIGC, a key Arab League institution.
A breakdown showed Egypt had the highest inflation rate of 18.3 per cent in 2008. Qatar, one of the fastest growing economies, had a rate of 15 per cent, while inflation was 14.5 per cent in Syria, 14.3 per cent in Sudan, 14 per cent in Jordan, 12.6 per cent in Oman and 11.96 per cent in Djibouti.
The report, citing estimates by the International Monetary Fund, put inflation in the UAE at 11.5 per cent, 10.8 per cent in Kuwait and Lebanon, 10.4 per cent in Libya, 10 per cent in Yemen and 9.87 per cent in Saudi Arabia.
Inflation rates (%) in key economies
2007 2008
Egypt 9.50 18.30
Qatar 13.80 15.00
Oman 5.90 12.60
The UAE 11.10 11.50
Kuwait 5.50 10.80
Lebanon 4.10 10.80
KSA 4.11 9.87
*Source: IAIGC
Arab countries saw the highest inflation rates in the world in 2008 as a result of a rise in prices and strong domestic demand because of an economic upsurge, according to official data.
From around 7.65 per cent in 2007, the combined Arab inflation rate climbed to a record high of 10.09 per cent in 2008, said the Kuwaiti-based Inter-Arab Investment Guarantee Corporation (IAIGC) in its annual report.
But the report expected the rate to shrink in 2009 due to the economic slowdown, mainly in the Gulf, coupled with a fall in global prices and other factors.
"The consumer price index in 19 Arab countries, which have provided data, peaked at 10.09 per cent last year compared with 7.65 per cent in 2007.
"The rate last year far surpassed the inflation rate of 3.38 per cent in the industrial nations and the 9.26 per cent in emerging and developing economies," it said.
The surge last year was caused by a sharp increase in global fuel and food prices, the report added, along with an upswing in domestic demand due to high oil prices and expansionary fiscal policies in the region, and a large rise in private investment.
"Inflation in the Arab World is expected to recede this year mainly because of a decline in the prices of basic commodities, lower rents and a slowdown in the economies of many members," said IAIGC, a key Arab League institution.
A breakdown showed Egypt had the highest inflation rate of 18.3 per cent in 2008. Qatar, one of the fastest growing economies, had a rate of 15 per cent, while inflation was 14.5 per cent in Syria, 14.3 per cent in Sudan, 14 per cent in Jordan, 12.6 per cent in Oman and 11.96 per cent in Djibouti.
The report, citing estimates by the International Monetary Fund, put inflation in the UAE at 11.5 per cent, 10.8 per cent in Kuwait and Lebanon, 10.4 per cent in Libya, 10 per cent in Yemen and 9.87 per cent in Saudi Arabia.
Inflation rates (%) in key economies
2007 2008
Egypt 9.50 18.30
Qatar 13.80 15.00
Oman 5.90 12.60
The UAE 11.10 11.50
Kuwait 5.50 10.80
Lebanon 4.10 10.80
KSA 4.11 9.87
*Source: IAIGC
By Staff Writer
© Emirates Business 24/7 2009
