GDP growth estimated at 1.2 percent in 2012

The economy is expected to grow by 1.2 percent this year, according to the Global Economic Monitor report released by the Institute of International Finance (IIF). The report predicted 3.7 percent growth in 2013.

Inflation rate is expected to stand at 10.6 percent this year, compared to 4.3 percent in 2011. The current account deficit is projected to widen to $11 billion, from $10 billion in 2011. The report noted that escalating geopolitical tensions in the Middle East could affect the whole region’s economic prospects in the short run.