International Monetary Fund (IMF) has predicted a growth rate of 7 percent for the Gulf Co-operation Council (GCC) countries in 2011-12. Except for oil exporting countries, the region is likely to face fiscal and monetary challenges.

Overall growth in the Middle East and North African region is projected at 3.9 per cent in 2011, down from 4.4 per cent in 2010. However buoyed by the rising oil prices and increased production, Oil exporting countries except for Libya are forecast to expand by 4.9 per cent in 2011.

The findings have been reported by the IMF annual report Regional Economic Outlook for the Middle East and Central Asia, released on Wednesday.

The report says among the region’s oil importers Afghanistan, Djibouti, Egypt, Jordan, Lebanon, Mauritania, Morocco, Pakistan, Syria, and Tunisia growth is projected to be fewer than two per cent in 2011. Oil exporting countries in 2012 are expected to grow around 3.9 per cent. For the region as a whole, the IMF has predicted growth of 3.7 per cent in 2012.