Decreasing
oil prices will rein in growth prospects of Nigeria and Algeria in the
second half of this year, while benefitting Saudi Arabia, United Arab
Emirates and Egypt, a new report by growth partnership company, Frost
& Sullivan, has said.
The report noted that the economic
indicators of emerging Middle Eastern and African countries for the
second half of 2015 pointed to a mixed bag of possibilities and
challenges.
“While growth in the Kingdom of Saudi
Arabia, the United Arab Emirates and Egypt will pick up pace, Algeria
and Nigeria will continue to grapple with the decline in exports and
depreciation in currency.
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“Largely
reliant on earnings from oil and gas exports, Algeria and Nigeria will
reel from low oil prices. The Algerian government’s investments in
infrastructure as well as public welfare and subsidy schemes will remain
subdued in H2 2015.”
Weak private consumption and an ongoing
power crunch signal a bleak outlook for the second half of 2015 in
Nigeria as well, the report said.
According to the report, diversifying
the range of export products is an immediate requirement that MEA
countries must address to guard against price volatility and strengthen
their economy in the immediate future.
New analysis from Frost & Sullivan,
Global Economic Tracker – Insights and Trends – Emerging Middle East and
Africa Q2, 2015, presents economic and industry indicators for the KSA,
UAE, Egypt, Algeria and Nigeria.
The Senior Research Analyst, Emerging
Market Innovation, Frost & Sullivan, Krishanu Banerjee, said,
“Declining oil prices multiply the significance of diversification.”
Title : Oil slump: Nigeria, Algeria face worsening growth prospects
Description : Decreasing oil prices will rein in growth prospects of Nigeria and Algeria in the second half of this year, while benefitting Saudi A...
