Economic report predicts significant fall in OIC income

The 2009 economic report was presented yesterday at the 25th session of the Standing Committee for Economic and Commercial Cooperation (COMCEC) of the OIC. The report emphasized the effects of the crisis on members of the OIC.

The report estimates that the GDP of OIC members will decrease from $4.59 trillion in 2008 to $3.98 trillion in 2009, while their share of GDP among developing countries will decrease from 24.4 percent to 23.4 percent.

While the report expects OIC members' populations to exceed 1.5 billion, it continues by noting that per capita income will fall from $3,950 in 2008 to $2,631 this year. The gap between global and OIC member per capita income, however, will fall from $6,052 in 2008 to $5,538 according to the report. The effects of the financial crisis were grouped under several headings and included a slowing of economic growth and a fall in exports and commodity prices.

Also among the problems experienced were a decrease in foreign capital, a decrease in remittances from abroad, an instability in exchange rates, destabilization of current accounts and an increase in unemployment. The income gap within the OIC was also a striking point, as the report highlighted that the income of the richest OIC country was 353 times that of the poorest OIC member.

The report notes that out of the world’s 49 least developed countries, 22 are OIC members with nearly all income from petroleum and agriculture and very little industrial production; 18 of the OIC members derived nearly all of their income from petroleum alone. The report also showed Turkey to continue its important economic role in the OIC. According to 2008 figures published in the report, Turkey had the highest GDP, exceeding $700 billion.

The top 10 members by GDP made up 57 percent of the total OIC population, while making up 71 percent of production. The share of the world’s population was also a notable point within the report, with OIC members making up 22.3 percent of the world population but making up only 7.4 percent of all production.

The largest exporter according to the report was Saudi Arabia, with Turkey being the fifth largest. Turkey was, however, the largest importer among the 57 members. Foreign trade volume was $3.3 trillion, making up 10.2 percent of global trade volume.

Meanwhile, the High Level Experts of COMCEC are continuing their efforts to create a draft document to be submitted to the ministerial-level meetings scheduled to take place today. Presided over by State Planning Organization (DPT) Undersecretary Kemal Madenoğlu, the experts mainly deal with issues such as cooperation among OIC member countries and the eradication of poverty.

The ministerial-level meetings will start today with the participation of President Abdullah Gül. In addition to today’s event, there will also be the OIC Economic Summit, with the presence of the presidents of several member countries.