Despite deficit, positive indicators of fiscal surplus in OIC countries: OIC Report

Jeddah, 4th February, 2015 (WAM) – The Organization of Islamic Cooperation (OIC) Member States are expected to record a fiscal deficit of 1.5 percent of the gross domestic product (GDP), which is projected at $ 10.7 trillion in 2015 compared to 1.3 percent in 2014, and 1.1 in 2013, but are relatively in a better position than the developed countries ( 4.4 percent), and the global ratio ( 3.6 percent) in 2014, according to an OIC economic report.

The report stated that the OIC countries registered fiscal surplus for 2011 and 2012, before falling to a negative rate during 2013 despite the fact that 13 member countries have achieved fiscal surplus for the same year.

Kuwait topped the OIC countries in the surplus for 2013 by 28.9 percent, followed by the Comoros 18.2 percent, Brunei 16.6 percent, Qatar 11.1 percent, UAE 10.1 percent, Saudi Arabia 8.3 percent, Oman 8.3 percent, Kazakhstan 5 percent, Libya 1.6 percent and Uzbekistan 1.3 percent, according to the OIC Economic Outlook 2014 report, prepared by the Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) and carried by the International Islamic News Agency (IINA).

The report pointed out that the above ten countries ranked among the top 20 countries in the world in terms of fiscal balance surplus.

The report found that the rate of inflation – a reduction in the purchasing power per unit of money – in the OIC countries reached 8.5 percent in 2013, lower than the inflation rate registered in 2012 at 8.7 percent, which is much higher than the rate of the developed and developing countries.

The report also forecast a decrease in the rate of inflation in the developing countries by 5.2 percent in 2015 compared to 5.5 percent in 2014, which is also higher than the global rate recorded in 2014 and the expected rate for 2015 (1.5 percent).

The report revealed that the overall inflation rates in the OIC countries posted a surge of 45.8 percent in consumer prices during the period from 2012 to 2013, which is much higher than the average increase registered in other developing countries (32 percent), as well as the global rate (20.5 percent) in the same period.