International Monetary Fund released a statement that massive unemployment and unimpressive economic growth is creating unrest and tensions in the Arabic community. This statement was made keeping Saudi Arabia, Iran and UAE in mind.
Crux of the Matter
Several Arab countries are seeing citizens take to the streets to protest against the government, demanding economic reforms and end to corruption.
This unrest is further hurting the economy in the Middle East and North Africa (MENA region).
“The government has to act firmly and swiftly in order to address those imbalances, bring confidence back by addressing the fiscal situation, and lower expenditure,” said Jihad Azour, a member of IMF.
The GDP growth rate of the MENA region has fallen from1.1% to 0.1% this year.
Curiopedia
The International Monetary Fund (IMF), also known as the Fund, is an international organization headquartered in Washington, D.C., consisting of 189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world while periodically depending on World Bank for its resources. Formed in 1944 at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. It now plays a central role in the management of balance of payments difficulties and international financial crises. Read More
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