Economic Survey 2011

The global economy is projected to continue on a recovery path albeit at a slower real GDP growth rate of 4.2 per cent in 2011. The growth will however be strained by normalization of a financial sector that is still open to shocks arising from risky markets since interest rates are expected to remain low. However, it is assumed that interest rates will rise gradually to prevent a shock on domestic borrowing and investments. 1.23. Uncertainties over unrests in the Middle East and North Africa and their implications on the global oil supply chain are expected to prop up oil prices which increased to US$ 112.84 per barrel in March 2011. This is likely to result to reduced productivity in the region and higher oil prices in 2011.