Economic Outlook 2015

As the region is passing through economic transition,it is expected to have growth of%8paved with political unrest risks,it is crucial to set up strategies,to benefit from global integration through trade policy to push growth,and structure reforms of financial market to adapt with global standards and maintain domestic competition &stabilize real interest rates to boost domestic development that could impact public-private sector investments.and set up early warning system to monitor REPI index and prioritize giant infrastructure project schedule to maintain equilibrium phase and avoid inflation consequences.

GDP growth expected to be one of the fastest in the world due to differentiated economic drivers that contributes to more than half of GDP,despite volatility spillover, policy maker urged to plan buffers &cushion contracts to refrain volatility risks and maintain profits above break-even,Gov intervention in bond purchases will stabilize market value&control interest rates necessary for development & to avoid asset bubble &inflationary pressures through early warning system to reach equilibrium phase.SWF to be managed through diversification strategy, investment in short-med term to control volatility risks. Moreover it is recommend to strengthen the financial structure with short-medium term gov bonds to enhance market stability and lessen market fluctuation.For oil export countries,beside investment in value added petro products to achieve market comparative advantage it is advised to set long term contracts with cushion to avoid price volatility in merging market &maintain market share.

Policy makers encouraged to take strategic steps to enhance financial market regulations through balance between domestic and global standards to maintain domestic competitiveness and,upgrade economic drivers.Establishing mechanisms to protect investors rights and dispute resolution will positively boost foreign investors appetite to participate in local markets and add value.Moreover,central banks

intervention through managed floating system is crucial to balance between domestic growth and,foreign direct investment value added.