01 October 2015, Lagos – 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.
“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.
“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.”