Annual Report 2012 - Al Baraka Investment and Development

directors’ report
gloBAl And RegionAl eConoMies
Despite the global growth averaging just 2.2%, in contrast
the countries where ABG maintains a banking presence fared
somewhat better than average, as their economies all managed
to grow with the single exception of Sudan which suffered under
exceptional circumstances due to the loss of the majority of its
oil revenues through the secession of South Sudan. The remaining
economies managed to exhibit growth, ranging from 1.5% in
the case of Bahrain to 3.7% in the case of Pakistan.
24 Annual Report 2012
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Of the three largest global economies, those of the US and Japan
each managed to grow, but by only 2.2% and 1.8% respectively,
as each struggled to avoid slipping back into recession through
various measures: quantitative easing phase three (QE3) in the
case of the US and post-tsunami and earthquake reconstruction
spending in the case of Japan, while the Chinese economy managed
only a weak 7.8% - below that deemed necessary to sustain
its expansion – the result of insufficient investment spending
combined with declining exports. As for the eurozone, Greece’s
cataclysmic plunge into near-default, sparking the steep drop in
confidence in Spain’s and Italy’s ability to manage their debt and
budget deficits, followed by slippage into recession, resulted in an
estimated -0.4% negative growth rate for the single currency area.
Among other significant economies, however, only that of Britain
recorded negative growth (-0.1%), while other OECD countries,
(All figures in US Dollars unless otherwise stated)