ISTANBUL, Nov. 5 (Xinhua) -- The economy of 57 Islamic countries was hit hard by the global financial and economic crisis, with the real GDP growth likely to drop to 1.2 percent in 2009, a senior economist said here on Thursday.
The statement was made by Zafar Iqbal, senior economist from the Islamic Development Bank, during the senior officials meeting of the 25th Session of the Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Countries (OIC).
Addressing about 400 senior officials from Islamic countries, Zafar said the impact of the crisis has been increasingly felt in Islamic countries.
The real GDP growth of oil-exporting member countries is likely to drop to 1.6 percent while non-oil exporting countries 0.8 percent in 2009, he added.
With the global recovery and positive trends in commodity prices, growth is expected to pick up in 2010, he continued.
However, he said that both oil-exporting and non-oil exporting member countries will not be able to achieve the pre-crisis level of growth by 2014.
Although strong public policies have supported OIC member countries' economic recovery, he said, the short-term V-shaped recovery through economic painkillers appears to be fragile.
"A number of major risks are also associated with medium-term recovery, and whether V-, U-, or W-shaped recovery will depend upon underlying factors," he said.
Among various regions of OIC member countries, Middle East and North Africa countries were hit hardest as the region's real GDP growth dropped from normal growth rate of 5.9 percent to 0.3 percent in 2009. The region has been adversely affected mainly due to collapse in oil and asset prices, significant decline in domestic demand and sharp in foreign direct investment flows.
The economist alerted Islamic countries that some member countries had already been affected by the high food and fuel prices and the global financial and economic recession has added to economic strains seriously affecting their socio-economic development.
Consequently, he said, they have been affected by slowing down in economic growth, deteriorating current account balances, shrinking remittances and development assistance, and rising unemployment and poverty.
The human cost of the economic crisis has also imperiled the social stability and future economic emancipation of the people in OIC member countries, he noted.
In particular, he said, the Millennium Development Goals appear to suffer a serious setback as the decade-long gains achieved by Islamic countries are under stress.
The committee is formed of 57 OIC members and five observer states.
Islamic countries start meeting on economic co-op
ISTANBUL, Nov. 5 (Xinhua) -- Senior government officials from 57 Islamic countries started their meeting here on Thursday, focusing on economic and commercial cooperation between Islamic countries under the Organization of the Islamic Conference (OIC).
Issues such as global financial crisis, cooperation among member states and combat against poverty are high on the agenda of the two-day meeting. Full story
Special Report: Global Financial Crisis
