Tuesday, 17 February 2009

Call for national stimulus plan

The country could reverse an economic slump and post 0.5 per cent growth this year with an aggressive plan to boost government spending and inject Dh110 billion (US$29.9bn) into the banking system to promote lending, Standard Chartered Bank said yesterday.

“First, the Government must increase its expenditure substantially, and second, it needs to address the liquidity issue,” said Marios Maratheftis, the regional head of research at the bank.

The recommendations echo the policies that countries throughout the world are adopting to spur economic growth, ward off financial instability and spur spending during the worst global economic crisis in three decades.

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