Countries need to reduce the wage gap between the public and private sectors 4/29
Countries need to reduce the wage gap between the public and private sectors
Report of the IMF: slowing growth 3 percent
BAGHDAD - morning report predicted «developments in the regional economy of the Middle East and Central Asia» issued by the Fund to record growth this year , an average of about 3 percent. Although this rate slightly higher than in 2015, this modest boom reflects primarily the increase in oil production in Iraq and Iran after the lifting of sanctions. However , the growth forecasts point to a further slowdown in most of the other oil - exporting countries this year , with the reduction of public spending to counter the drop in oil prices.
The latest report growth outlook in 2016 for most of the Petroleum Exporting Countries cut in the «Middle East and North Africa, Afghanistan and Pakistan» area compared projections issued last October.
At the same time, the economic recovery is still fragile and unbalanced between the oil - importing countries in the Middle East and North Africa, Afghanistan and Pakistan.
It is expected to slow growth to 3.5 percent in 2016 because of the negative fallout from the slowdown in growth in countries neighboring oil - exporting and the intensification of regional conflicts.
In this context , Masood Ahmed Director of the Middle East Department and Central Asia , said during the effective launch of the report in Dubai: «it is necessary that the acceleration of all countries to intensify efforts to design and implement reforms to give a boost to the prospects for the economy and provide jobs and enhance the containment of growth before too late ».
Assured Ahmed that the international community needs to strengthen coordination and improved to support the refugees and bring stability in the affected countries. He said that «there is a large financing needs, with additional funding of host countries are required to be able to finance projects related to the crisis.»
And Ahmed told reporters that «oil price decline led to heavy losses in export revenue reached $ 390 billion last year and is expected to be in addition to $ 140 billion again this year. »the many countries significant steps taken to adjust their balance sheets situation, focusing mainly on the reduction of capital expenditures, as well as to carry out significant reforms in energy prices.
However , it is still expected to arrive the average fiscal deficit in Algeria and the Gulf cooperation Council to 12.75 percent of GDP in 2016, and remain at a level of 7 percent over the medium term. It is expected that a deficit of 7.75 percent of GDP in 2016 in the region 's other oil - exporting countries - the countries that are less dependent in general on oil revenues.
Despite concerted efforts to curb the deficit efforts, Ahmed said that «it would require considerable further measures to reduce the deficit over the next several years to ensure the sustainability of public finances and the sharing of oil wealth fairly with future generations. » the report points to the need for countries to reduce dependence on oil and accelerate the pace of reforms to deal with the new reality , which is characterized by a decline in oil prices. It is desirable that the policy - makers implementation of support reforms to diversify the economy and the growth of non - oil sector, such as reducing the pay gap between the public and private sectors, and to promote compatibility between the education and skills needed in the market.
Ahmad said: that «there is a priority on the same degree of importance is that can the private sector provide adequate employment opportunities for residents of the growing numbers of young people, a process that will require deep structural reforms to improve the growth prospects in the medium term. »
Saw the oil - importing countries in the region rebound to growth of 3 percent in 2011-2014 to 3.75 percent in 2015. It is expected that growth in 2016 - 2017 remain around this level as evaluated by the report.
This recovery drew support from lower oil prices and improved confidence levels, given the progress made by recent reforms. However, tension hangs over the outlook because of the insecurity and the negative repercussions of regional conflicts, as well as lower remittances and falling trade and financial aid recently as a result of the economic slowdown in the Gulf Cooperation Council.
It has helped effects of energy subsidy reforms, coupled with a decline in oil prices, the reduction of the government deficit from a peak of 9.5 percent in 2013 to about 6.5 percent of GDP in 2016. The report recommends conducting additional measures to control public finances - conditions so designed in a manner supportive of growth - to put public debt on a sustainable and maintaining macroeconomic stability path and for some countries, it can lead to increase exchange rate flexibility to fiscal discipline by helping to absorb the impact of support external shocks, and improve foreign positions through competitive support.
In the report, the Fund 's policy - makers are encouraged in these countries to promote structural reforms that raise the quality of education and improve the efficiency of labor markets and financial markets and increase trade openness to help drive economic growth and job creation.