COMCEC: Financial Outlook of the OIC Member Countries 2017

Transcription

1. Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation (COMCEC) FINANCIAL OUTLOOK OF THE OIC MEMBER COUNTRIES 2017 COMCEC COORDINATION OFFICE October 2017
3. Standing Committee for Economic and Commercial Cooperation of the Organization of Islamic Cooperation (COMCEC) FINANCIAL OUTLOOK OF THE OIC MEMBER COUNTRIES 2017 COMCEC COORDINATION OFFICE October 2017
5. For further information please contact : COMCEC Coordination Office Necatibey Caddesi No: 110/A 06100 Yücetepe Ankara/TURKEY Phone: 90 312 294 57 10 Fax: 90 312 294 57 77 Web: www.comcec.org *E-book: http://ebook.comcec.org E-mail: finance@comcec.org
7. PREFACE The Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC) Financial Outlook is a contribution of the COMCEC Coordination Office to enrich the discussions during the Financial Cooperation Working Group Meetings being held twice a year. Financial Cooperation Working Group is established as part of the implementation of the COMCEC Strategy. For developing a common approach, approximating policies and to address and find solutions for the financial challenges of the OIC Member Countries in financial cooperation, the COMCEC Strategy envisages Financial Cooperation Working Group as one of the implementation instruments of the Strategy. In this respect, Financial Cooperation Working Group Meetings aim to provide a regular platform for the member countries’ experts to elaborate financial cooperation issues and share their best practices and experiences. COMCEC Financial Outlook 2017 is prepared by Mr. Cafer BIÇER and Mr. Cezmi ONAT to present a general outlook of the financial system of the OIC Member Countries highlighting the potential areas for cooperation as well as evaluating the recent developments in the global economic and financial system. Views and opinions expressed in the report are solely those of the authors and do not represent the official views of the COMCEC Coordination Office or the Member States of the Organization of Islamic Cooperation. The final version of the report is available at the COMCEC website.* Excerpts from the report can be made as long as references are provided. All intellectual and industrial property rights for the report belong to the COMCEC Coordination Office. This report is for individual use and it shall not be used for commercial purposes. Except for purposes of individual use, this report shall not be reproduced in any form or by any means, electronic or mechanical, including printing, photocopying, CD recording, or by any physical or electronic reproduction system, or translated and provided to the access of any subscriber through electronic means for commercial purposes without the permission of the COMCEC Coordination Office. i
8. TABLE of CONTENTS PREFACE ................................................................................................................................................................ i LIST OF FIGURES ............................................................................................................................................. iii LIST OF TABLES ............................................................................................................................................... iv ABBREVIATIONS ............................................................................................................................................... v INTRODUCTION .................................................................................................................................................1 1. RECENT ECONOMIC AND FINANCIAL DEVELOPMENTS ..................................................................3 2. FINANCIAL OUTLOOK OF THE OIC MEMBER COUNTRIES .................................................................. 12 2.1 Financial Depth......................................................................................................................................................15 2.2 Financial Access.....................................................................................................................................................20 2.3 Financial Efficiency ..............................................................................................................................................23 2.4 Financial Stability .................................................................................................................................................26 3. ISLAMIC FINANCE ...................................................................................................................................... 29 3.1 Concept and the Brief Modern History of Islamic Finance ....................................................................30 3.2 Islamic Finance Outlook .....................................................................................................................................31 3.3 Islamic Banking .....................................................................................................................................................33 3.4 Capital Market Sector ..........................................................................................................................................34 3.5 Takaful ......................................................................................................................................................................38 4. FINANCIAL COOPERATION UNDER THE COMCEC .................................................................................. 39 4.1 COMCEC Strategy: Financial Cooperation ....................................................................................................39 4.1.1 Regulatory and Supervisiory Cooperation.......................................................................................................39 4.1.2 Capital Flows ..................................................................................................................................................................40 4.1.3 Visibility of Financial Markets................................................................................................................................40 4.1.4 Training, R&D Activities And Statistics..............................................................................................................40 4.2 Implementation of the Strategy ......................................................................................................................41 4.2.1 COMCEC Financial Cooperation Working Group ..........................................................................................41 4.2.2 COMCEC Project Funding Mechanism ................................................................................................................42 4.3 On-Going Activities Under the Comcec .........................................................................................................43 4.3.1 OIC Member States Stock Exchanges Forum...................................................................................................43 4.3.2 COMCEC Capital Markets Regulators Forum ..................................................................................................43 4.3.3 Cooperation Among the Central Banksand Monetary Authorities.......................................................44 APPENDIX ......................................................................................................................................................... 45 REFERENCES .................................................................................................................................................... 63 ii
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LIST OF FIGURES Figure 1 : Comparison of the GDP Growth Rates of Selected Country Groupings ...................................................... 4 Figure 2: GDP Growth Rates for Selected OIC Country Groups (%) ................................................................................ 4 Figure 3: GDP Growth Rates for EMDE Countries (%)........................................................................................................... 5 Figure 4: Top-10 OIC Countries in terms of GDP Growth-2016 (%) ............................................................................... 5 Figure 5: Inflation, Average Consumer Prices (% Change) .................................................................................................. 6 Figure 6: Unemployment Rates (% of total labor force) ....................................................................................................... 7 Figure 7: Inflation and Interest Rates in the US (%) ............................................................................................................... 7 Figure 8: World Trade Volume of Goods and Services (% Change) ................................................................................ 8 Figure 9: OIC Merchandise Export .................................................................................................................................................. 8 Figure 10: OIC Exports and Oil Prices ............................................................................................................................................ 9 Figure 11: FED Total Assets (Billion US$) ................................................................................................................................ 10 Figure 12: Exchange Rates of the Selected Economies per US$ (2006=100) ........................................................... 11 Figure 13: Private Credit by Deposit Money Banks to GDP (%) ..................................................................................... 16 Figure 14: Deposit Money Banks' Assets to GDP (%) .......................................................................................................... 17 Figure 15: Stock Market Capitalization to GDP (%) ............................................................................................................. 18 Figure 16: Stock Market Total Value Traded to GDP (%) .................................................................................................. 18 Figure 17: Bank Accounts per 1,000 Adults............................................................................................................................. 21 Figure 18: Bank Branches per 100,000 Adults ....................................................................................................................... 21 Figure 19: Market Capitalization Excluding Top 10 Companies to Total Market Capitalization (%) ........... 22 Figure 20: Bank Lending-Deposit Spread (%) ........................................................................................................................ 24 Figure 21: Bank Return on Assets (ROA) (%, after tax) ..................................................................................................... 24 Figure 22: Bank Return on Equity (%, after tax) ................................................................................................................... 25 Figure 23: Bank Regulatory Capital to Risk-weighted Assets (%) ................................................................................ 27 Figure 24: Bank Capital to Total Asset (%) .............................................................................................................................. 28 Figure 25: Bank Non-performing Loans to Gross Loans (%)........................................................................................... 28 Figure 26: Breakdown of IFSI by Region ................................................................................................................................... 32 Figure 27: Breakdown of IFSI by Islamic Finance Segments ........................................................................................... 32 Figure 28: Islamic Banking Assets (2012 1H-2016 1H) ..................................................................................................... 33 Figure 29: Shares of Global Islamic Banking Assets (1H2016) (%) ............................................................................. 33 Figure 30: Global Sukuk Issuances ............................................................................................................................................... 34 Figure 31: International Sukuk Issuances (2016) ................................................................................................................ 35 Figure 32:Domestic Sukuk Issuances (2016).......................................................................................................................... 35 Figure 33: Sukuk Structures in International Sukuk Issuances (2016) ...................................................................... 35 Figure 34: Sukuk Structures in Domestic Sukuk Issuances (2016) .............................................................................. 36 Figure 35: Top Countries in Islamic Funds AUM Outstanding (2015) (Million US$) ........................................... 37 Figure 36: Islamic Fund Assets by Asset Class ....................................................................................................................... 37 Figure 37: Number of Takaful Operators and Windows Globally (2015).................................................................. 38 Figure 38: Top Countries in Takaful Assets (2015) (USD MN) ....................................................................................... 38 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10. LIST OF TABLES Table 1 : Categorization of OIC Member States ....................................................................................................................... 13 Table 2: Selected Financial Data on OIC Member States .................................................................................................... 14 Table 4: Selected Financial Data on LIG-OIC Member States (2012) ........................................................................... 45 Table 5: Selected Financial Data on LMIG-OIC Member States (2012) ....................................................................... 46 Table 6: Selected Financial Data on UMIG-OIC Member States (2012)....................................................................... 47 Table 7: Selected Financial Data on HIG-OIC Member States (2012) .......................................................................... 48 Table 8: Selected Financial Data on LIG-OIC Member States (2013) ........................................................................... 49 Table 9: Selected Financial Data on LMIG-OIC Member States (2013) ....................................................................... 50 Table 10: Selected Financial Data on UMIG-OIC Member States (2013) .................................................................... 51 Table 11: Selected Financial Data on HIG-OIC Member States (2013)........................................................................ 52 Table 12: Selected Financial Data on LIG-OIC Member States (2014) ........................................................................ 53 Table 13: Selected Financial Data on LMIG-OIC Member States (2014) .................................................................... 54 Table 14: Selected Financial Data on UMIG-OIC Member States (2014) .................................................................... 55 Table 15: Selected Financial Data on HIG-OIC Member States (2014)........................................................................ 56 Table 16: Selected Financial Data on LIG-OIC Member States (2015) ........................................................................ 57 Table 17: Selected Financial Data on LMIG-OIC Member States (2015) .................................................................... 58 Table 18: Selected Financial Data on UMIG-OIC Member States (2015) .................................................................... 59 Table 19: Selected Financial Data on HIGH-OIC Member States (2015) .................................................................... 60 iv
11. ABBREVIATIONS BIS Bank for International Settlement COMCEC Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation GDP Gross Domestic Product EMDE Emerging Markets and Developing Economies IMF International Monetary Fund MENA Middle East and North Africa NIM Net Interest Margin NPL Non-Performing Loans OIC-LIG OIC-Low Income Group OIC-LMIG OIC-Lower Middle Income Group OIC-UMIG OIC-Upper Middle Income Group OIC-HIGH OIC-High Income Group OECD Organization for Economic Co-operation and Development PCM Project Cycle Management OIC Organization of the Islamic Cooperation SESRIC Statistical , Economic and Social Research and Training Centre for Islamic Countries SDG Sustainable Development Goals v
13. Financial Outlook of the OIC Member Countries 2017 INTRODUCTION The financial system of an economy comprises of banks , capital markets, pension and mutual funds, insurers, central bank, as well as regulatory and supervisory authorities. These institutions and markets provide a framework for undertaking economic transactions and provide an efficient mechanism to channel savings into investment, which is expected to create an environment for supporting economic growth. In this regard, issues in financial systems not only disrupt the role of intermediation in the financial markets, but they can also destabilize the effective working of other units in the economy; thereby causing economic crises and downturns. Moreover, increasing inter connection among financial institutions and markets can cause to spread crises rapidly across national borders. Well-functioning financial systems are essential for both domestic and international economic and financial stability. In this regard, it is an increasing trend that more studies and research put efforts to focus on the importance of financial stability for an efficient mechanism of the markets on the global scale as well as well-functioning of individual economies. Therefore, finance and financial cooperation have become an important area for policymakers to consider relations between financial stability and economic development. Due to increasing connectivity among financial institutions, resilient financial systems that are well-regulated and well-supervised are essential for both domestic and international financial stability.1 The bulk of the empirical literature on finance and development suggests that well-developed financial systems play an independent and causal role in promoting long run economic growth. Financial systems help mobilize and pool savings, provide payments services that facilitate the exchange of goods and services, produce and process information about investors and investment projects to enable efficient allocation of funds, monitor investments and exert corporate governance after these funds are allocated, and help diversify, transform and manage risk.2 In this sense, as the global markets have become more and more interdependent, the importance of financial cooperation among relevant economic units has emerged as a crucial cross cutting theme to reach well-functioning financial markets and to raise sufficient funds for the economic development. For example, closing the investment gap to achieve the Sustainable Development Goals (SDGs) of the United Nations by 2030 requires the mobilization of significant financial resources. It is estimated that the least developed countries need to increase annual average rate of investment at least 11 percent through 2030. This significantly exceeds the rate of investment growth between 2010 and 2015, which averaged 8.9 percent annually. At the same time, the global environment, including the weak economy, low trade growth, soft commodity prices, volatile international capital flows, and the increase of geopolitical risks make raising longterm investment and increasing capital formation particularly challenging.3 As a broad regional international organization, The COMCEC is one of the four standing committees of the OIC which is responsible for enhancing economic and commercial cooperation among the Member States. Since the commencement of its activities in 1984, Financial Systems Soundness Indicators 2016, IMF Demirgüç-Kunt, Aslı, ‘Finance and Economic Development: The Role of Government’, December 2008 3 UN World Economic Situation and Prospects 2017 1 2 1
14. Financial Outlook of the OIC Member Countries 2017 COMCEC has initiated many programs and projects towards improving financial cooperation among the OIC Member States . In addition, the COMCEC Strategy identified financial cooperation as one of the major cooperation areas and envisaged the establishment of the Financial Cooperation Working Group as an important instrument for strengthening financial cooperation among member countries. Furthermore, cooperation among the Stock Exchanges, Capital Market Regulators and Central Banks and Monetary Authorities of the Member States are other crucial ongoing endeavors in the field of financial cooperation under the COMCEC. Highlighting the recent global economic and financial developments briefly, this Outlook mainly aims to present a general outlook of the financial system of the OIC Member States. This Outlook is comprised of four main sections: The First Section briefly describes recent economic and financial developments at global, regional and country level as well as their impact on the global financial system. The Second Section gives a general overview of the financial system of the OIC Member States. It outlines financial depth, financial access, financial efficiency and financial stability in addition to the weaknesses and strengths of the OIC Member States according to selected financial benchmarking data. In this Outlook, the OIC Member States are classified according to their income levels. The Third Section briefly addresses Islamic Finance Industry. The Fourth Section underlines the cooperation efforts under the COMCEC Strategy and the ongoing activities under the COMCEC in this field. The Appendix Section gives the details of all figures of each OIC Member Countries analyzed in the report. 2
15. Financial Outlook of the OIC Member Countries 2017 1 . RECENT ECONOMIC AND FINANCIAL DEVELOPMENTS In 2016, the world economy expanded by 2.4 percent, the slowest rate of growth since the Great Recession of 2009. The main reasons of the sluggish growth in the global economy are the weak pace of global investment, declining world trade growth, weakening productivity growth and high levels of debt. Low commodity prices have exacerbated these factors in many commodity-exporting countries since mid-2014, while conflict and geopolitical tensions continue to weigh on economic prospects in several regions. While the world economy is estimated to grow by 2.7 percent in 2017, Emerging Markets and Developing Economies (EMDE) are expected to expand by 4.1 percent in this year. Commodity exporters in developing countries are also expected to see some slight increase in growth, as commodity prices stabilize and inflationary pressures driven by sharp exchange rate depreciations ease. East and South Asia will continue to grow more rapidly than other regions, benefiting from robust domestic demand and space for more accommodative macroeconomic policy. 4 Weak investment is at the foundation of the slowdown in global growth. Investment growth has slowed significantly in many of the major developed and developing economies. Protracted weak global demand has reduced incentives for firms to invest, while economic and political uncertainties have also weighed on investment. Lack of access to finance has also acted as a constraint in some cases, especially in countries where banks remain undercapitalized or where financial markets are under-developed. Since mid-2014, Governments in many commodity-exporting countries have also curtailed much-needed investment in infrastructure and social services, in response to the sharp loss of commodity revenue.5 Global economic prospects remain subject to significant uncertainties and risks that are weighted on the downside for the upcoming years. Some of these risks stem from monetary policy actions in major developed economies. The impact of introducing untested monetary policy instruments — such as the negative interest rate policies in Japan and Europe — remains unclear. The timing of interest rate rises in the United States is another area of uncertainty. As interest rate differentials relative to other developed economies widen, this has the potential to trigger financial volatility, reversal of capital inflows to developing economies, and abrupt adjustments in exchange rates. Such volatility would exacerbate vulnerabilities associated with high levels of debt and rising default rates in a number of developing countries, with the potential to push up borrowing costs, raise deleveraging pressures, and increase banking sector stress.6 Under these circumstances, world economy has been projected to grow at 2.7 percent in 2017 and 2.9 in 2018 according to the World Bank. After a modest growth of 1.6 percent in 2016, advanced economies are expected to pick up slightly for the years 2017 and 2018 and projected to grow 1.9 and 1.8 percent respectively. On the other hand, growth performances of the EMDE are expected to reach 4.1 and 4.5 percent respectively for the years 2017 and 2018 after performing 3.5 percent growth in 2016.7 World Bank Global Economic Prospects, June 2017 UN World Economic Situation and Prospects 2017 6 UN World Economic Situation and Prospects 2017 7 World Bank Global Economic Prospects, June 2017 4 5 3
16. Financial Outlook of the OIC Member Countries 2017 The growth performances of the OIC countries are expected to realize slightly lower than the average of the EMDE during the same period . The OIC countries are projected to grow by 3.9 and 4.1 percent in 2017 and 2018 respectively after growing 3.2 percent in 2016. Figure 1: Comparison of the GDP Growth Rates of Selected Country Groupings 5 4 3 2 1 0 World Advanced Economies Euro Area 2016 2017 2018 Emerging Markets and Developing Economies OIC 2019 Source: World Bank Global Economic Prospects, June 2017 Advanced economies started 2017 on a solid note, with investment and exports regaining momentum after subdued growth in 2016. Private consumption decelerated in early 2017, but has been supported by labor market improvements. Import demand has strengthened, further contributing to a recovery in global trade. In 2017, growth is expected to pick up in the United States and Japan, and to remain broadly stable in the Euro Area.8 Figure 2: GDP Growth Rates for Selected OIC Country Groups (%) 6 5 4 3 2 1 0 OIC OIC-Low Income Group 2016 OIC-Lower Middle OIC-Upper Middle Income Group Income Group 2017 2018 OIC-High Income Group 2019 Source: World Bank The GDP growth rates of OIC countries has slowed down to 3.3% in 2015, as compared to 4.1% in 2014, and expected to stay subdued around this level during 2016 and 2017 which is in line with the global slowdown in economic activity. This is mainly related to the decline in oil prices and macroeconomic distress for oil exporting countries like Saudi Arabia, Iran, Nigeria and United Arab Emirates etc. However, the growth prospects for the OIC member countries are expected to increase to 3.9 and 4.1 percent during 2018 and 2019 respectively. 8 World Bank Global Economic Prospects, June 2017 4
17. Financial Outlook of the OIC Member Countries 2017 Most of the total OIC GDP is produced by a few member countries . In 2015, the top 10 OIC countries in terms of the volume of GDP produced 73.8% of the total OIC countries output. Among these countries Indonesia has the highest share in OIC GDP (16.7%) followed by Saudi Arabia (9.9%), Turkey (9.3%) and Iran (8.0%). For that reason, the overall economic performance of the group of the OIC member countries remained highly dependent on the developments in these ten countries9. The figure below depicts the GDP growth rates of the selected country groups, namely all EMDE (Emerging Markets and Developing Economies) countries and EMDE MNA (Middle East and North Africa) Oil Exporters. The figure clearly shows how oil exporting countries have differed negatively from the average of all EMDE countries over the selected period. After 2014 as the oil prices plummeted sharply the economic growth of all commodity exporters showed a sluggish performance. Figure 3: GDP Growth Rates for EMDE Countries (%) 8 7 6 5 4 3 2 1 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EMDE MNA (Middle East North Africa) Oil exporters Emerging Markets and Developing Economies (EMDE) Source: World Bank, Global Economic Prospects, constant 2010 US$. Figure 4: Top-10 OIC Countries in terms of GDP Growth-2016 (%) 0 2 4 6 Iraq Uzbekistan Cote d'Ivoire Bangladesh Tajikistan Senegal Djibouti Iran, Islamic Rep. Turkmenistan Mali Source: World Bank, Global Economic Prospects 9 2016 OIC Economic Outlook, SESRIC 5 8 10 12
18. Financial Outlook of the OIC Member Countries 2017 In 2016 , average global inflation increased slightly to 2.4 percent from 2.1 percent in 2015, which was the lowest level registered since the global financial crisis. While inflation in the advanced economies remained below 1 percent in 2016 reflecting the impact of the drop in global energy prices, it is expected to realize around 2 percent during next three years. Figure 5: Inflation, Average Consumer Prices (% Change) 5 4 3 2 1 0 World Advanced Economies 2016 Euro Area 2017 2018 Emerging Markets and Developing Economies 2019 Source: IMF WEO April 2017 While the unemployment rates in some large developed countries, including Germany, Japan, the United Kingdom and the United States, have receded towards or below pre-crisis levels, most other members of the EU continue to struggle with high unemployment rates. Unemployment rates are generally low in East Asia, but rising unemployment in parts of South America, including Argentina, Brazil and Colombia, is raising concerns. Western Asia also suffers high unemployment, particularly among youth. Youth unemployment is a widespread global concern, impeding progress towards the SDGs. In 2016, 35 percent of unemployed people globally were aged 15-24, although this cohort represents only 15 percent of the world’s labor force.10 According to the latest available data, OIC member countries recorded significantly higher average unemployment rates compared to the world and non-OIC developing countries during the period 2000-2015. During this period, total unemployment rates in OIC countries changed between 8.1% and 7.5%. After the global financial crisis, unemployment rates in developed countries increased from a level below 6% to over 8%. During the period 2009-2013, average unemployment rate in developed countries remained higher than the rate in OIC countries. In 2015, OIC countries recorded a rate of 7.5%, while it is estimated at 6.8% in developed countries.11 10 11 UN World Economic Situation and Prospects 2017 2016 OIC Economic Outlook, SESRIC 6
19. Financial Outlook of the OIC Member Countries 2017 Figure 6 : Unemployment Rates (% of total labor force) 14,0 12,0 10,0 8,0 6,0 4,0 2,0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Advanced economies Euro area Major advanced economies (G7) Other advanced economies (Advanced economies excluding G7 and euro area) Source: IMF WEO April 2017 Downside risks to global growth include rising protectionism, high policy uncertainty, and the possibility of financial market disruptions. U.S. monetary policy has tightened gradually so far, but a faster pace would impact global financing conditions. Central banks in advanced economies will gradually normalize monetary policy as inflation increases and economic slack diminishes. While the U.S. tightening cycle is well ahead of other major advanced economies, it is proceeding at a substantially slower pace than in the past.12 Figure 7: Inflation and Interest Rates in the US (%) 3,0 2,5 2,0 1,5 1,0 0,5 0,0 2012 2013 2014 2015 2016 2017 2018 Inflation, average consumer prices (% Change) Six-month London interbank offered rate (LIBOR)-Percent Source: IMF WEO April 2017 As shown in the above figure, after the global financial crisis the real interest rates have recorded negative levels in the US; however after 2015 inflation rates have started increasing in parallel to the interest rates and it is expected to reach zero level real interest rate by 2018. Global trade growth has rebounded in early 2017 from a post-crisis low of 2.5 percent in 2016, despite rising trade policy uncertainty. The recovery, which began in the second half of 2016, has been supported by stronger industrial activity. Investment growth in advanced economies is firming, and the post- crisis deceleration in capital spending observed in EMDEs appears to be easing as the earlier terms-of-trade shock for commodity exporters wanes. A recovery in 12 World Bank Global Economic Prospects, June 2017 7
20. Financial Outlook of the OIC Member Countries 2017 goods trade is supporting an upturn in China ’s exports, which in turn boosts imports of intermediate products across regional and global value chains.13 Figure 8: World Trade Volume of Goods and Services (% Change) 15 10 5 0 -5 -10 -15 Source: IMF WEO Database, April 2017 After 2.2 percent increase in 2016 which was the lowest level since the Global financial crisis, the World trade growth is expected to rebound to 4 percent in 2017. The recovery in trade growth in 2017 is supported by stronger import demand from major advanced economies, increased trade flows to and from China, and a diminished drag from weak import demand from commodity exporting EMDEs.14 Figure 9: OIC Merchandise Export 3.000 40 30 2.500 20 2.000 10 1.500 0 -10 1.000 -20 500 -30 OIC Total Merchandise Exports (Billion US$) 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 -40 2001 0 % Change Source: UNCTAD Stat Following the global financial crisis in 2009, total merchandise exports from OIC countries fell sharply around 28 percent compared to previous year, it started to pick up rapidly since then 13 14 World Bank Global Economic Prospects, June 2017 World Bank Global Economic Prospects, June 2017 8