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The Arab Monetary Fund has revealed that the stimulus plans adopted by Arab countries since the start of the “Covid 19” pandemic until last July amounted to around $ 344 billion, of which 57% was in the form of support provided by monetary policy.
In a recent report on the outlook for the Arab economy, reported by the Moroccan news agency, the IMF added that the value of stimulus packages provided by financial policy tools, for their part, stood at 43 % of the total value of these packages.
The report expects Arab economies to grow 2.9% in 2021 and 3.6% the following year, with Arab countries benefiting from continued vaccination campaigns, recovery in demand overall and continued political support.
He predicted that the inflation rate in Arab countries would remain at relatively high levels, estimated at around 11% in 2021, due to the recovery in economic activity and rising commodity prices, and of its decline to around 6% in 2022..
He called on Arab governments to adopt comprehensive economic and financial reform programs with the aim of addressing economic imbalances and improving economic resilience and resilience.
The report says there is still great uncertainty about the future paths of economic recovery, mainly related to the trajectory of the pandemic, especially after the emergence of new strains of the virus in some parts of the world, as well as a great deal of uncertainty. uncertainty about the path of core growth, especially as governments gradually withdraw their stimulus packages.
With regard to international oil markets, the report expects an increase in oil demand of around 6 million barrels per day during 2021, which supports the expected resumption of economic activities, which in addition the continuation of the work of the “OPEC +” agreement, will increase oil prices on international markets.
He stressed that the risks surrounding the current wave of recovery boil down to the possibility that the epidemic will continue for a longer period than expected, with the risks that this could lead to the depletion of many countries of available political space. to support the recovery, in addition to the risks of a fragile and uneven recovery and the resulting worsening levels of global inequalities and inequalities.
As a result, the report adds that the importance of focusing on policies that help support economic recovery, support confidence levels, build economic resilience against potential economic shocks, and address imbalances that hamper transition towards inclusive, sustainable and balanced growth, with all that is necessary eliminate inequalities Equality and opportunities for all, accelerate the pace of technological transformation, and a new impetus towards reforms that improve productivity and competitiveness, in particular in with regard to developing countries and emerging market economies.
He also underlined that the most important priorities at the level of public policies are the need to adopt comprehensive economic reform programs that respond to the short, medium and long term challenges facing the Arab countries according to the studied visions related to the future strategies of these countries. and in a manner that ensures the achievement of sustainable development and balanced, comprehensive and sustainable growth.
Finally, he stressed the importance of working to contain internal and external structural imbalances with the aim of directing economic resources towards supporting economic growth and human capital in the Arab region, which would help increase productivity and competitiveness levels, keep pace with changes in the local, regional and international labor markets, and reduce unemployment rates, which are among the highest in the Arab world.
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