Wednesday, June 2, 2010

Strong Recovery Expected in Middle East

The oil dependent economies of the Middle East have improved with the resumption of capital inflows and rising crude oil prices. According to International Monetary Fund (IMF), growth is gaining momentum in the region due to resurgence in domestic consumption but is still clouded by stress in banking systems.

Till now, only estimations were made about the recovery of the sulking economy and the job market of the Middle East. But now reports in Regional Economic Outlook (REO) by IMF have shown that the oil exporting economies have emerged from the crisis to a great extent. As the oil prices plummeted in 2008, the oil GDP contracted by 4.7% and is forecasted to restore by 4.3% by the year end.

There is no doubt about the fact that jobs in Gulf cities are back with a bang. Employers are ready to pay much more than ever to get hold of the talented and skilled professionals for their companies. As the economies of Middle East recover and show resilience, non-oil sectors also show good growth. With considerable fuelling up of economic activities in the area, the aim of diversification of Arabic government is being constantly achieved with new vigor everyday.

The emerging markets like that of Afghanistan, Egypt, Jordon, Lebanon, Morocco, Pakistan, Tunisia, etc. are seen recovering from the slowdown. With investment and bank credit beginning to pick up, growth in these areas also seem to catch up. Since the current development rate is not enough, the main challenge for these emerging markets involves improving competitiveness to raise the pace of progress and generate much-needed employment.

Apparently, the already upward swinging market will spiral up further as a result of huge stimulus offered by the government and foreign investors. Middle East, thus, gets to keep the crown of one of the most preferred career destinations in the world.

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