imf’s official praises approach of gulf states
Last Updated : GMT 07:25:12
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 07:25:12
Arab Today, arab today

To reform economy

IMF’s official praises approach of Gulf States

Arab Today, arab today

Arab Today, arab today IMF’s official praises approach of Gulf States

International Monetary Fund (IMF)
Dubai - Arab Today

Regional Director of the International Monetary Fund in the Middle East and Central Asia Jihad Azour called the Gulf States for taking serious measures to contain the current deficit which came as a result of the decline of oil prices since 2014. He stressed that the Gulf States are on the right track by implementing financial reforms.
The International Monetary Fund (IMF) believes that Saudi Arabia can afford to relax its tough fiscal stance “from time to time,” like in the decision last week to reinstate benefits to some government workers. Jihad Azour, the new IMF director for the Middle East and Central Asia, told reporters in Dubai at the unveiling of the fund’s regional economic outlook for the Middle East that he believed the Saudi commitment to fiscal balance was still intact after the benefits move.
“From time to time, you can allow some fine-tuning in a program this big. The government has confirmed that a balanced budget is still the target for 2020. I think you can allow some slippage in a program of such magnitude,” Azour said.
Saudi Arabia launched a strategy to transform the economy of the Kingdom in its Vision 2030 plan, which aims to reduce its dependency on oil revenue and increase private-sector growth. However, Azour warned that there was a danger of “reform fatigue” in the strategy. “One of the risks is that fatigue sets in. It is an ambitious program of reform and diversification, but the government needs to prioritize its targets and implement them,” he added.
The IMF also believes that economic growth will be weaker this year. It recently downgraded growth to 0.4 percent this year and 1.3 percent in 2018. A team of IMF analysts is currently in the Kingdom working on a new assessment, Azour said.
But the outlook for Saudi Arabia, and the wider Middle East and North Africa (MENA) region, is improving. “Things are looking up and external conditions have improved. The reforms that have been undertaken in the region are beginning to bear some fruit,” Azour said.
The improved economic outlook was because of higher growth in the rest of the world and rising commodity prices, though the IMF does not believe there is much upside in the crude oil price. It sees $55 per barrel as the average price this year and the next. The benchmark crude Brent traded at around $52 a barrel on Monday, while the Kingdom’s 2017 budget is calculated on a $50 projection.
For the region as a whole, the IMF said: “The global outlook is consistent with somewhat higher commodity prices and stronger global trade, which will support economic activity in the Middle East and Pakistan; stronger growth in China will also support anticipated investment in some countries.”
The fund said that growth in the non-oil economies of the region would continue, but, because of the low oil prices, “further sustained fiscal adjustment remains critical,” which would affect the overall economic growth. This is forecast to fall to 2.6 percent across the region and Pakistan this year, rising to 3.4 percent in 2018. Oil exporters are expected to show 1.9 percent growth this year and 2.9 percent next year.
On the forthcoming Saudi privatization plan, which could be worth up to $300 billion at the top end of estimates, Azour said: “Whatever can be done to improve private sector participation is good, so I think all these initiatives are welcome. They are ambitious plans for reform and diversification.”
He added that high levels of debt were an issue facing the region, especially for the oil exporters. In the UAE, the region’s second-biggest economy, the IMF estimates gross public debt (excluding government-related entities) at 19.3 percent of gross domestic product (GDP).
An IMF team is working on a new assessment of debt in Dubai, which is believed to be significantly higher than the UAE average and will report later this month. But Dubai’s growth is higher than most other parts of the region, at about 4 percent projected for 2017.
 

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

imf’s official praises approach of gulf states imf’s official praises approach of gulf states

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

imf’s official praises approach of gulf states imf’s official praises approach of gulf states

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet

GMT 14:18 2017 Saturday ,28 January

AbdulKhaliq Al Ameri to lead TAQA Iraq operations

GMT 10:49 2017 Monday ,11 September

Actor Mohamed Kareem participate in new film

GMT 17:00 2016 Wednesday ,17 August

Elephant that washed up in Bangladesh dies

GMT 19:38 2018 Thursday ,18 January

Kuwaiti, US leaders discuss regional developments

GMT 07:54 2015 Tuesday ,16 June

Booker gives blues a punk edge

GMT 16:56 2017 Saturday ,06 May

Ex-Gaza chief Haniya elected leader of Hamas

GMT 02:13 2017 Sunday ,29 October

Feb20/Mar20

GMT 02:36 2017 Monday ,30 October

Feb20/Mar20

GMT 20:36 2017 Thursday ,19 January

Saad Lamjarred Hopes to Be Out of Prison Soon

GMT 21:24 2016 Friday ,02 December

Safeguarding Endangered Cultural Heritage Conference

GMT 10:45 2017 Monday ,09 October

Actress Bosy participates in refereeing committee

GMT 12:21 2017 Wednesday ,15 November

Nadal pullout leaves Federer as last man standing

GMT 07:22 2017 Friday ,01 December

AU, EU summit winds up after anti-slavery initiative

GMT 12:15 2016 Tuesday ,20 December

Bolt, Phelps cap era of excellence
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday