Growth To Moderate As Oil Exports Wane

April 2005 | Economic Analysis

Economic expansion was strong in 2004, as regional economic activity and trade picked up again after the war in Iraq, and we estimate that the economy grew by 4% in real terms. We expect to see this rate moderate somewhat in 2005, although healthy growth of 3% will be sustained by high levels of government spending, as high oil prices keep revenues flowing in from oil exports. This also assumes that the resumption of trade with Iraq, and sustained oil-driven regional demand, will limit the effects of falling oil exports. Under Saddam Hussein, Iraq supplied Syria with cheap oil, freeing

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