MENA economies to grow by 3 per cent in 2013, IMF says

Author: Nehal El-Sherif

   Cairo (dpa) - Economic growth in the Middle East and North Africa (MENA) is expected to slow down to 3 per cent in 2013 due to an expected slowdown among oil exporters, who led the region's growth last year, the International Monetary Fund said Tuesday.

   In 2012, the region's economic growth was relatively robust at 4.8 per cent, thanks mostly to the restoration of Libya's oil production and expansions in the Gulf states.

   Iraq is expected to lead the 2013 growth rate in the MENA area thanks to a projected gross domestic product growth rate of 9 per cent, followed by Qatar with 5.2 per cent.

   However, stable oil production among oil-exporters against a backdrop of relatively weak global demand is expected to reduce this year's overall rate.

   Growth rate in the MENA area is estimated to increase to 3.7 per cent in 2014.

   The region's slow political transitions and the risk that the Syrian conflict could spread to neighbouring states are both preventing a quicker recovery.

   Oil importers will also continue to face significant fiscal challenges due to high energy subsidy spending.

   In recent months, some countries undertook macroeconomic adjustments, in the form of greater exchange rate flexibility and reduced energy subsidies, including Egypt and Tunisia, the IMF report said.

   Both countries - the first to topple their presidents in the 2011 uprisings that then spread across the region - have faced similar problems, such as high unemployment, over the past two years.

   With Egypt and Tunisia both seeking loans from the IMF, their governments have cut subsidies and raised taxes to improve their fiscal situation.

   According to reports, the IMF and Tunis have already reached an agreement on a 1.78-billion-dollar precautionary loan, while Cairo is still holding talks on a loan worth 4.8 billion dollars.

   "The region must not lose sight of the medium-term challenge of diversifying their economies, creating more jobs, and generating more inclusive growth," the IMF said.

   Syria was excluded from this year's projections because of the ongoing conflict there.

Coptic pope blames Egypt's Morsi for sectarian clashes

Author: Nehal El-Sherif

   Cairo (dpa) - The head of Egypt's Coptic Orthodox Church, Pope Tawadros II, blamed President Mohammed Morsi on Tuesday for failing to protect the main cathedral in Cairo when it was attacked at the weekend.

   Morsi, during a phone conversation with the pope on Sunday, "promised to protect the cathedral, but in reality, it did not happen," Tawadros said.

   "Negligence and poor assessment of the situation" were the reasons behind Sunday's violence, which killed two people, the pope told private broadcaster ONTV.
  
   Sunday's clashes erupted near St Mark's Cathedral after the funeral of four Egyptian Christians killed in violence with Muslims last week.

   The church was attacked with petrol bombs and tear gas.

   Christians, who account for some 10 per cent of Egypt's 85-million population, are alarmed by the rise of Islamists after president Hosny Mubarak's overthrow more than two years ago.

   There have been several instances of violence targeting Christians after the 2011 revolution, and the number of court cases against Copts accused of blasphemy has increased.

   Morsi, who hails from Egypt's largest Islamist group, the Muslim Brotherhood, condemned the attack saying: "I consider any attack on the cathedral as an attack on me, personally."

   He ordered an investigation into the incident and stressed that the state shoulders the responsibility of protecting Copts and Muslims alike.

   "We want actions not mere words," Tawadros said. "There are many names and committees formed everyday, but there is no action on the ground.

   "For more than 2,000 years, the Egyptian church was never exposed to such incident," he said.

   Hours after his statement, the Coptic Orthodox Church said Tawadros had gone into seclusion, according to state-run Al-Ahram newspaper. He cancelled his weekly sermon on Wednesday as well as a reception of mourners that was scheduled to be held on Thursday.

   Tawadros became the leader of the largest Christian minority in the Middle East in November, succeeding Pope Shenouda III, who died in March 2012.

   Dozens of people marched in Cairo to St Mark's Cathedral in solidarity with the Christians.

   They were protesting "Down with the regime" as they carried Egyptian flags.

   Opposition groups have accused the Islamist rulers of failing to end divisions and tensions in the country.