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Arab countries share an economic crisis with similar characteristics in terms of high youth unemployment and dependence on external loans. According to a Bloomberg report, the wealthy oil states are no different from their poor sisters.
According to the International Monetary Fund (IMF), the Middle East and North Africa (MENA) has the worst performance in the global economy since 2011, but Latin America can choose new governments, according to Bloomberg, while they are unhappy with the economic results of their governments.
This does not happen in most Arab countries.
The International Monetary Fund (IMF) expects the MENA region to be the worst economic title in recent years.
The Bloomberg report released on Thursday indicates that Arab leaders are struggling to implement long-term solutions to the economic crises in their countries. "Every painful step on the road to reform represents a threat to unleash public anger."
Leaders and leaders in the region are establishing the "worst case scenario" in Libya, Yemen and Syria, where instability and civil war have been the cause.
The IMF expects economic growth in the Middle East and North Africa to remain low, just above 2.4% by 2020, due to several factors, including low oil growth in countries such as Saudi Arabia, US sanctions against Iran and geopolitical tensions in several economies. .
Funds and experts
According to Alia Moubayed, chief investment officer for the Middle East at Jefferies International, the lack of government staff capable of implementing technical reforms, particularly in the Gulf, is one of the obstacles to finding solutions. to these economic crises.
Bleach describes solutions to the region's economic problems as "politically costly".
Several countries in the region are seeking the help of foreign countries to resolve their crises, while the poorest countries generally seek the IMF, which has been heavily involved in the region since the revolutions of the Arab Spring.
The fund has provided loans to Egypt, Iraq, Jordan, Morocco and Tunisia and has been blamed for its roles in these countries, said Bloomberg.
The report refers to a general strike organized by the Tunisian General Labor Union last week and participants, including tens of thousands of civil servants and workers, called for an improvement in their wages, to protest measures of austerity.
The strikers in Tunisia, and many of those who negotiate the economic conditions in these countries, accuse their governments for their "agenda".
The IMF, for its part, says it supports government programs of economic reform, which mainly include the end of the government 's direct support programs and the liberalization of the local currency in other measures characterized by economic measures. austerity.
The kingdom says that it does not need any IMF loans, but that it appeals to foreign advisers to develop plans for economic change, but that these advisers are accused of making money. try to apply "duplicate or undisclosed solutions to the economy of a country like Saudi Arabia". Forbidden in Saudi Arabia, the report notes that kingdom leaders are aware of the danger of popular anger, especially following the crisis caused by the death of journalist Jamal Khashoggi, who criticized the leadership of the Kingdom.
According to Bloomberg, since the collapse of oil prices in 2014, even the rich governments of the Gulf countries have run deficits in their budgets.
These governments, without borrowing from the IMF, use the international bond market.
According to the IMF, the Middle East and North Africa (MENA) region has recorded a higher external debt since 2014 compared to other countries in the world.
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