Monday 25 June 2018

Global growth will fall to 2pc in 2009 says report

Dubai, November 23, 2008

Global GDP growth in purchasing power parity (PPP) terms is expected to slow down to a mere 2 per cent in 2009, according to a research report.

The report from the Economist Intelligent Unit (EIU), the global leader in business intelligence and the foremost provider of country, industry and management analysis, points to a decline in global economic growth from the 4.8 per cent achieved in 2007 and the projected 3.6 per cent in 2008, with only a sluggish recovery expected in 2010.

Prospects for the global economy and how this may impact business in the region will be discussed at Economist Conferences‘ ‘World in 2009’ Executive Forum, a one-day conference to be held on January 20, 2009 at the Madinat Jumeirah in Dubai, UAE.

The forum will discuss emerging economic and business trends, and will build on The Economist’s annual publication - 'The World in 2009’.

The global financial crisis has caused severe damage to the real economy with a vicious circle between deteriorating financial conditions hitting economic activity and a weakening economy leading to higher defaults and thereby undermining financial conditions. Despite initiatives by governments across the globe, analysts at the EIU believe that any new shocks will still lead to temporary flare-ups, but should not lead to a further worsening of financial conditions on a global scale. However, a full normalisation of financial conditions is not expected until 2010 at the earliest.

Amidst the current crisis, growth in the Middle East and North Africa region is expected to slow down to 4.6 per cent from the projected 6.1 per cent rate for 2008. The upcoming ‘World in 2009’ Executive Forum will feature detailed discussions of these latest trends expected to significantly affect international affairs and business in the Gulf in the year ahead.

'Change will be in the air at the start of 2009, with a new American president, shifting expectations for the economy - and a reappraisal of the energy outlook and investment priorities for the Gulf region. This is a timely opportunity for high-level discussion of what to expect for the year ahead, in the Gulf and beyond,' said Daniel Franklin, executive editor of The Economist and Editor of The World in 2009.

‘The World in 2009’ Executive Forum will gather prominent business, financial and political figures to identify and explore trends that will affect business strategy in 2009. Nouriel Roubini, Professor of Economics and International Business, Stern School of Business at New York University, will deliver a keynote presentation on predicted global conditions after the term of outgoing US President George W Bush. In addition, Sheikha Lubna Al Qasimi, UAE Minister of Foreign Trade will give the closing keynote speech. The event will be chaired by Daniel Franklin with Robin Bew, editorial director and chief economist of the Economist Intelligence Unit, slated to deliver a presentation titled - ‘Predictions for the year ahead: Implications for the Gulf’.

“Even as the Gulf states deploy their vast sovereign wealth resources to help support financial institutions in Europe and America, concern is mounting about the impact of the global economic crisis on this fast growing region. The falling oil price and a domestic liquidity squeeze have led to questions about the growth prospects for 2009,” pointed out Bew.  “Can the Gulf rise out of the storm raging in the rest of the world?' he added.

The event will feature debates on key topics by regional executives including Nazem Al Kudsi, chief executive officer, Abu Dhabi Investment Company; Amir Abdulla, chief financial officer, and director, Legal and Finance Division, World Food Programme; Henry Azzam, chief executive officer, Mena, Deutsche Bank; and Nabil Habayeb, president and chief executive officer, Middle East & Africa, GE, among others.

‘The World in 2009’ Executive Forum will<

Tags: GDP | EIU | Global growth |

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