Political uncertainties in the MiddleEast and North Africa (MENA) continue to affect the shortterm economic prospects in the region, while majordevelopments in the global economy over the past six monthshave put the region on a two-track growth path for 2012.These developments include a significant rise in crude oilprices on fears of oil supply disruptions and weak economicactivity in the Eurozone. Economic growth of MENA's oilexporting countries will be strong as it rebounds from theaverage of 3.4 percent in 2011 to 5.4 percent in 2012.Overall growth in the region is expected to be 4.8 percentin 2012, surpassing the 3 percent growth achieved in 2011.Improvement in the growth prospects of oil exporters is dueto strength in oil markets. The fiscal situation is expectedto remain tenuous for oil importing countries, especiallythose going through transitions. Overall, inflation isexpected to remain subdued in 2012, with the notableexceptions of Iran and Egypt. Subsidies are currentlydampening currently dampening the effects of increasedglobal food and energy prices in many MENA countries.
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